Oppenheimer analyst Mohan Naidu maintained a Buy rating on Healthequity (HQY) today and set a price target of $74. The company’s shares closed yesterday at $66.45.
Naidu commented:
“HQY reported HSA membership at 4M for FY19 as pre-released in January but increased expected revenues/EPS. Though not unexpected, the slowdown in membership growth is a cause for concern and reflects a larger issue at hand—weakness in the overall HSA market. While visibility on regulatory and/ or administrative actions remains murky, we remain hopeful for some action to drive more penetration. Meanwhile, the company’s efforts to drive more value for its members, move deeper with network partners and expand through combined retirement products make us believe in market-beating growth. But the pullback in the market and slowing membership growth are likely to trim valuation. Retaining Outperform rating, but decreasing target to $74 (from $104).”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 11.1% and a 55.6% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Evolent Health, and Premier Inc.
Healthequity has an analyst consensus of Strong Buy, with a price target consensus of $84.86, representing a 27.7% upside. In a report released today, SunTrust Robinson also upgraded the stock to Buy with a $81 price target.
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The company has a one-year high of $101.58 and a one-year low of $47.33. Currently, Healthequity has an average volume of 940.6K.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is neutral on the stock. Most recently, in December 2018, Jon Kessler, the President & CEO of HQY bought 17,410 shares for a total of $718,685.
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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.
