HealthEquity Positioned to Weather Fed Rate Cuts, RBC Says

MT Newswires Live09-19 22:53

HealthEquity (HQY) is expected to deliver "meaningful" long-term earnings growth despite upcoming US Federal Reserve rate cuts, RBC Capital Markets said in a note Thursday.

"Despite reaccelerating fundamentals, HealthEquity's valuation has steadily compressed of late, primarily on concerns around its exposure/sensitivity to interest rates and the forthcoming Fed cutting cycle," RBC said.

The investment firm said increasing custodial yields are set to provide strong tailwinds over the next three years, potentially driving HealthEquity's earnings per share growth to exceed 20% annually through 2027 "even with a 75 to 100 basis-point surprise shift in the forward curve," according to the note.

HealthEquity's health savings account growth is projected at 7% to 7.5% through 2027, driven by rising medical cost trends and "loosening" labor markets, RBC said.

RBC raised its price target on HealthEquity stock to $100 from $92 and maintained its outperform rating.

Shares of HealthEquity rose 1.2% in recent trading.

Price: 78.43, Change: +0.89, Percent Change: +1.15

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2468505097?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-09-19 22:53","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2468505097","market":"sg","top_or_hot":-1,"title":"HealthEquity Positioned to Weather Fed Rate Cuts, RBC Says","media":"MT Newswires Live","content":"<html><body><p> <a href=\"https://laohu8.com/S/HQY\">HealthEquity</a> (HQY) is expected to deliver \"meaningful\" long-term earnings growth despite upcoming US Federal Reserve rate cuts, RBC Capital Markets said in a note Thursday.</p><p>\"Despite reaccelerating fundamentals, HealthEquity's valuation has steadily compressed of late, primarily on concerns around its exposure/sensitivity to interest rates and the forthcoming Fed cutting cycle,\" RBC said.</p><p>The investment firm said increasing custodial yields are set to provide strong tailwinds over the next three years, potentially driving HealthEquity's earnings per share growth to exceed 20% annually through 2027 \"even with a 75 to 100 basis-point surprise shift in the forward curve,\" according to the note.</p><p>HealthEquity's health savings account growth is projected at 7% to 7.5% through 2027, driven by rising medical cost trends and \"loosening\" labor markets, RBC said.</p><p>RBC raised its price target on HealthEquity stock to $100 from $92 and maintained its outperform rating.</p><p>Shares of HealthEquity rose 1.2% in recent trading.</p><p>Price: 78.43, Change: +0.89, Percent Change: +1.15</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HealthEquity Positioned to Weather Fed Rate Cuts, RBC Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHealthEquity Positioned to Weather Fed Rate Cuts, RBC Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-19 22:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.mtnewswires.com/><strong>MT Newswires Live</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HealthEquity (HQY) is expected to deliver \"meaningful\" long-term earnings growth despite upcoming US Federal Reserve rate cuts, RBC Capital Markets said in a note Thursday.\"Despite reaccelerating ...</p>\n\n<a href=\"https://www.mtnewswires.com/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4154","symbol_name":"管理型保健护理","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2468505097","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468505097","pubTimestamp":1726757628,"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"HealthEquity (HQY) is expected to deliver \"meaningful\" long-term earnings growth despite upcoming US Federal Reserve rate cuts, RBC Capital Markets said in a note Thursday.\"Despite reaccelerating fund","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4154":"管理型保健护理","LU2065731478.USD":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","HQY":"HealthEquity","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC"},"translate_title":"加拿大皇家银行表示，HealthEquity已做好应对美联储降息的准备","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HQY":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"US7Y.BOND":1,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"HealthEquity (HQY) is expected to deliver \"meaningful\" long-term earnings growth despite upcoming US Federal Reserve rate cuts, RBC Capital Markets said in a note Thursday.\"Despite reaccelerating fundamentals, HealthEquity's valuation has steadily compressed of late, primarily on concerns around its exposure/sensitivity to interest rates and the forthcoming Fed cutting cycle,\" RBC said.The investment firm said increasing custodial yields are set to provide strong tailwinds over the next three years, potentially driving HealthEquity's earnings per share growth to exceed 20% annually through 2027 \"even with a 75 to 100 basis-point surprise shift in the forward curve,\" according to the note.HealthEquity's health savings account growth is projected at 7% to 7.5% through 2027, driven by rising medical cost trends and \"loosening\" labor markets, RBC said.RBC raised its price target on HealthEquity stock to $100 from $92 and maintained its outperform rating.Shares of HealthEquity rose 1.2% in recent trading.Price: 78.43, Change: +0.89, Percent Change: +1.15","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2468505097"}