3 Reasons KeyBanc Raised HealthEquity (HQY) PT Ahead Of Earnings

KeyBanc analyst, Donald Hooker, reiterated his Overweight rating on shares of HealthEquity, Inc (NASDAQ: HQY) and raised his price target to $105 from $90 ahead of F2Q earning on 9/6 for 3 reasons:

1) The analyst believes an increase in bank CD interest rates in recent quarters represents at least $50M+ of incremental EBITDA that is now essentially baked into HQY’s future results.

2) The company has developed a financial/technology platform over the past year that allows it to move individual HSAs more seamlessly and rapidly between different depository institutions in order to meet targeted deposit levels (and optimize yields intrayear)

3) The analyst anticipates a Senate vote on 2 pieces of HSA-friendly bills (that recently passed the House) which would double the HSA contribution limits to $6,650 for individuals and $13,300 for families, potentially adding 13% of immediate EBITDA lift for HQY (we estimate) with additional incremental tailwind thereafter.

For an analyst ratings summary and ratings history on HealthEquity, Inc click here. For more ratings news on HealthEquity, Inc click here.

Shares of HealthEquity, Inc closed at $94.21 yesterday.

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