HealthEquity price target raised to $118 from $95 at Jefferies

Jefferies raised the firm’s price target on HealthEquity (HQY) to $118 from $95 and keeps a Buy rating on the shares. Estimates have risen in recent quarters and the firm now sees less room for upside in the second half of FY25 and FY26 relative to the current maturity ladder. However, it believes Robert F. Kennedy Jr., the current nominee for Secretary of HHS, represents “a potential step change” for the market who could potentially increases the total addressable market by as much as four times, noting that in an op-ed for the WSJ in early September, he outlined potential policy ideas including to “increase patient choice by giving every American a health savings account.”