HealthEquity’s Price Target Increased at KeyBanc
KeyBanc analysts increased their price target on HealthEquity (NASDAQ:HQY) to $95 from $85, keeping an Overweight rating.
The analysts shared insights from a recent conference with HealthEquity's management, coming after the company reported impressive earnings, particularly in terms of profitability. The analysts adjusted estimates upward, considering higher custodial yields, with enhanced rate products now exceeding 30% and expected to rise to around 60% by 2027 or sooner.
The analysts believe HealthEquity is strategically positioned for growth by expanding its share in the Health Savings Accounts market, both organically and through strategic acquisitions, enhancing its rate business, and utilizing AI to bolster its financial performance.
The analysts argued that the company's high-margin HSA assets, which contribute to a strong cash position, justify the potential for multiple expansion, supporting his Overweight rating.
| Symbol | Price | %chg |
|---|---|---|
| 2413.T | 1696.5 | 1 |
| 4483.T | 2987.5 | -1.46 |
| 2175.T | 2080.5 | -1.01 |
| 4480.T | 3670 | -4.63 |
HealthEquity Stock Soars 11% on Better Than Expected Q1 Results
HealthEquity (NASDAQ:HQY) shares gained more than 11% intra-day today after the company reported its Q1 earnings results, with revenue coming in at $244.4 million, better than the Street estimate of $239.39 million. EPS was $0.50, beating the Street estimate of $0.41.
For fiscal 2024, the company expects EPS to be in the range of $1.88-$1.97, compared to the Street estimate of $1.77, and revenue in the range of $975-$985 million, compared to the Street estimate of $968 million.
While the interest rate outlook continues to be the primary force driving both EBITDA & shares, analysts at RBC Capital see encouraging improvement across other fundamentals as well, including (1) continued progress driving increased adoption of the company's enhanced yield offerings, (2) benefits of automation driving lower service costs, and (3) increasing traction adding new clients.
HealthEquity Stock Soars 11% on Better Than Expected Q1 Results
HealthEquity (NASDAQ:HQY) shares gained more than 11% intra-day today after the company reported its Q1 earnings results, with revenue coming in at $244.4 million, better than the Street estimate of $239.39 million. EPS was $0.50, beating the Street estimate of $0.41.
For fiscal 2024, the company expects EPS to be in the range of $1.88-$1.97, compared to the Street estimate of $1.77, and revenue in the range of $975-$985 million, compared to the Street estimate of $968 million.
While the interest rate outlook continues to be the primary force driving both EBITDA & shares, analysts at RBC Capital see encouraging improvement across other fundamentals as well, including (1) continued progress driving increased adoption of the company's enhanced yield offerings, (2) benefits of automation driving lower service costs, and (3) increasing traction adding new clients.
HealthEquity Shares Dropped 23% Following Q3 Results
HealthEquity, Inc. (NASDAQ:HQY) shares were trading more than 23% lower Tuesday morning, following the company’s reported Q3 results, with revenues coming in at $180 million, below the consensus estimate of $184 million. This was driven primarily by weakness in service revenue as the number of CDBs declined sequentially across FSAs, commuter, and COBRA.
In addition, the company provided a downward guidance revision, which likely caught most people by surprise, however, the strength in the core HSA business appears to be continuing into year-end.
According to the analysts at RBC Capital, the significant share price drop following the “by no means great quarter” is a pretty strong over-reaction.
