Mark Marcon, an analyst from Robert W. Baird, maintained the Buy rating on Healthequity (HQY – Research Report). The associated price target is $97.00.
Mark Marcon has given his Buy rating due to a combination of factors surrounding Healthequity’s (HQY) financial health and strategic growth prospects. The company’s setup for continued strong earnings and free cash flow growth over the next several years positions it as a potential serial compounder, which is beneficial in the context of a higher inflation and interest rate environment. Additionally, the acquisition of BenefitWallet is expected to contribute positively, as evidenced by the recent successful transfer of accounts and assets, bolstering the company’s valuation attractiveness.
Furthermore, Marcon’s optimism is fueled by HealthEquity’s recent performance, which includes record highs for new HSA sales, net HSA growth, and HSA asset growth—all achieved organically and in spite of a slower employment growth environment. This momentum, combined with what appears to be conservative initial guidance for the following fiscal year, suggests a strong potential for a beat-and-raise pattern in the company’s financial results. HealthEquity’s competitive positioning, bolstered by its superior partner network and technology, along with favorable legislative prospects, underscores Marcon’s belief in the company’s capability to double its adjusted EPS within the next few years.
According to TipRanks, Marcon is a 5-star analyst with an average return of 11.3% and a 57.58% success rate. Marcon covers the Industrials sector, focusing on stocks such as Paychex, Automatic Data Processing, and Insperity.
In another report released on March 14, Wells Fargo also assigned a Buy rating to the stock with a $93.00 price target.
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Healthequity (HQY) Company Description:
HealthEquity, Inc. provides range of solutions for managing health care accounts. The firm’s offers its solutions for employers, health planbs, brokers, consultants and financial advisors. Its services include HAS, FSA, HRA, DCRA, 401(k), Commuter, COBRA and HIA. It also offers products like healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements, and healthcare incentives. The company was founded by Stephen D. Neeleman on September 18, 2002 and is headquartered in Draper, UT.
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