Analyst Alexei Gogolev from J.P. Morgan reiterated a Buy rating on Healthequity and keeping the price target at $126.00.
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Alexei Gogolev has given his Buy rating due to a combination of factors that highlight HealthEquity’s strong market position and growth potential. HealthEquity is a leading provider in the health savings account (HSA) sector, which is experiencing significant growth driven by rising healthcare costs and an aging population in the U.S. The company holds a substantial share of the market, with approximately 25% of HSA accounts and 21% of HSA assets, positioning it well to capitalize on industry expansion.
Furthermore, HealthEquity’s financial outlook is promising, with expectations of high single-digit revenue growth and EBITDA margins exceeding 40%. The company’s strategy to mitigate revenue volatility through its Enhanced Rate product and forward contracts is also noteworthy. With a valuation that appears attractive compared to its peers in the Vertical SaaS universe, and a projected price target of $126 per share by December 2026, Gogolev sees significant upside potential, reinforcing the Buy recommendation.
In another report released on September 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $109.00 price target.