Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $126.00 price target on HealthEquity, Inc (NASDAQ:HQY) following the Senate’s passage of its Budget Reconciliation bill that includes three pro-HSA (Health Savings Account) provisions. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.06, indicating robust liquidity to support its growth initiatives.
The Senate approved its version of the Budget Reconciliation bill Wednesday, incorporating HSA-friendly measures that Mizuho considers positive for HealthEquity. This development marks a significant shift from the original Senate bill in early June, which contained no pro-HSA provisions.
HealthEquity shares had underperformed following June earnings, dropping 7% compared to the S&P’s 4% gain, as investors reacted to the initial absence of HSA provisions in the Senate’s original budget proposal. The House version, passed earlier, had included ten pro-HSA provisions.
Mizuho specifically highlighted that HSA eligibility for bronze and catastrophic marketplace plans under the Affordable Care Act could potentially increase HealthEquity’s total addressable market by up to 20%.
The late inclusion of these three pro-HSA provisions in the final Senate bill represents a "net positive for HQY relative to what is currently priced into shares," according to Mizuho’s analysis, supporting their maintained Outperform rating and $126 price target.
In other recent news, HealthEquity, Inc. reported its fiscal first-quarter results, showcasing a robust performance that exceeded analysts’ expectations. The company achieved a total revenue of $331.9 million, marking a 15% increase year-over-year, and surpassing the consensus estimate of $322.58 million. Earnings per share (EPS) reached $0.97, outperforming the forecasted $0.82. Adjusted EBITDA was reported at $140.2 million, reflecting a 19% year-over-year growth. Analysts from BTIG maintained a Buy rating with a $130 price target, while Citizens JMP raised the price target to $117, citing HealthEquity’s strong financial performance. KeyBanc reaffirmed an Overweight rating with a $100 price target, describing the quarter as a "clearing event" for fraud concerns. Goldman Sachs, however, maintained a Neutral rating, reflecting concerns over slowing HSA account growth despite acknowledging potential growth opportunities from policy changes. HealthEquity also highlighted a decrease in direct fraud-related costs and continued investments in technology to enhance security and member resources.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.