Mizuho (NYSE:MFG)'s stock price target of $126.00 for HealthEquity represents an approximate 25% upside from the current stock levels, indicating a strong potential for investor returns. While trading near its 52-week high, InvestingPro analysis suggests the stock is currently overvalued compared to its calculated Fair Value.
The firm's outlook is based on the company's solid positioning in the market and the expected positive financial trends in the forthcoming years, supported by a healthy current ratio of 4.1 and moderate debt levels. The firm's positive outlook is also based on the reversal of trends that caused softer growth for HealthEquity during fiscal years 2021 to 2023, a period affected by the Covid pandemic.
The disruptions in commercial health insurance markets and lower interest rates, which were a result of emergency Federal Reserve actions during the pandemic, are now shifting. This change is anticipated to be beneficial for HealthEquity, with the firm predicting an earnings per share (EPS) compound annual growth rate (CAGR) of approximately 25% from fiscal year 2025 to 2028, estimating from a fiscal year 2024 EPS base of $2.25.
In other recent news, HealthEquity, a prominent player in health savings accounts, has reported significant growth in its Q2 2025 results. The company has seen a 23% increase in revenue, a 46% rise in adjusted EBITDA, and a 27% growth in Health Savings Accounts assets. Moreover, HealthEquity has finalized the BenefitWallet acquisition, adding 216,000 HSAs and $1.0 billion in assets.
HealthEquity has also settled a lease termination lawsuit with Union Mesa 1, LLC, agreeing to a $30 million payment. In terms of analyst coverage, Goldman Sachs has initiated coverage on HealthEquity with a Neutral rating, while RBC Capital Markets has increased its price target to $100, maintaining an Outperform rating.
KeyBanc has kept its Overweight rating on HealthEquity, with a steady price target of $100. They highlight HealthEquity's resilience in the early stages of a declining interest rate cycle. The company has introduced Health Payment Accounts and announced a new $300 million share repurchase program. These are recent developments that underscore HealthEquity's commitment to growth and innovation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.