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Posted by
Two Blokes June 4, 2025 -
Filed in
Stock
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7 views
HealthEquity benefits from secular HSA growth and higher interest rates, with Q1 results beating expectations and guidance raised slightly. The core investment thesis is HQY's earnings power is highly levered to cash balances and long-term interest rates, with fixed-rate contracts providing visibility and future growth. Valuation is sensitive to long-term rate assumptions; fair value is $105–$115 per share, with the current price near $110 offering only modest upside.
