Oppenheimer analyst Mohan Naidu maintained a Buy rating on Healthequity (NASDAQ: HQY) yesterday and set a price target of $85. The company’s shares closed on Friday at $75.10, close to its 52-week high of $82.04.
Naidu commented:
“We hosted mgmt for meetings with investors which focused on the growth trends, competitive position and possible regulatory opportunities. The current trend toward consumerization through the combination of deductible plans and HSA will continue as employers seek ways of increasing employee involvement and provide a mode for employee savings. Not surprisingly, the interest rate environment will provide numbers upside. While the regulatory environment is unpredictable, several bills in various stages give us hope on regulatory tailwind that can further accelerate the current HSA growth. Given the high valuation, we expect to see volatility but continue to believe in the secular trend and expect to see more flows into the stock due to scarcity of such high-growth names with upside. $85 target.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 12.2% and a 60.8% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Healthequity with a $78.71 average price target.
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Healthequity’s market cap is currently $4.64B and has a P/E ratio of 84.38. The company has a Price to Book ratio of 11.69.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock.
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HealthEquity, Inc. engages in the provision of healthcare saving solutions. Its products include 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.
