On Wednesday, RBC Capital Markets adjusted its stock price target for HealthEquity, Inc. (NASDAQ:HQY), a health savings account provider, to $92 from $90, while maintaining an Outperform rating on the stock. The revision follows the company's financial report, which showed fourth-quarter figures at the higher end of the forecasted range.
HealthEquity's fourth-quarter results, released today, displayed strong revenue and EBITDA performance, aligning with the top end of the projections set during the company's Investor Day on February 22, 2024. This positive outcome prompted the analyst to revise the price target upwards slightly.
For fiscal year 2025, management has updated its EBITDA outlook, increasing the midpoint by approximately 1% to $448 million, which is slightly above the consensus estimate of $446 million. More, the company has reaffirmed its revenue guidance of $1.14 to $1.16 billion for the same period, in line with the consensus forecast of $1.15 billion.
Looking ahead, HealthEquity remains optimistic about its growth trajectory, expressing confidence in its strategy to approximately double adjusted earnings per share over the next three years. This growth is expected to be driven by a blend of revenue expansion and cost efficiency measures.
The adjustment of the stock price target to $92 reflects the analyst's positive outlook on HealthEquity's financial performance and strategic initiatives aimed at enhancing shareholder value.
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