HealthEquity initiated with an Outperform at Mizuho

Mizuho analyst Steven Valiquette initiated coverage of HealthEquity (HQY) with an Outperform rating and $126 price target Amid continued adoption of high-deductible health plans with HSAs in the U.S. market, along with the expected multiple future years of tailwinds to HealthEquity from higher interest rates, the company looks well-positioned to generate double-digit revenue and EBITDA growth over the next several years as the market leader for technology-driven HSA solutions, the analyst tells investors in a research note. The tailwinds from increased U.S. HDHP commercial membership from a flow of incoming Medicaid-ineligible lives in the aftermath of state Medicaid redeterminations are also underappreciated, the firm adds.