HealthEquity: Compounding Flywheel Reveals Attractive Entry Point
HealthEquity, Inc. is positioned as a leading HSA administrator, capitalizing on rising healthcare costs and favorable legislative changes. The company reported a 9% revenue growth in FY2026, reaching $1.313 billion, with notable margin expansion and a 17% increase in custodial revenue. Management anticipates continued yield increases in FY2027, reinforcing its positive outlook.
- ▪HealthEquity is rated a Buy with a price target of $115.
- ▪The company experienced a 9% revenue growth in FY2026, totaling $1.313 billion.
- ▪Custodial revenue grew by 17% due to improved rate migration.
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