Jefferies reveals a health stock that could rally 30% this year

Year-to-date, Healthequity Inc (NASDAQ: HQY) hasn’t been very exciting for its shareholders but the story moving forward will likely be a different one, says a Jefferies analyst.

Healthequity stock has upside to $84

On Thursday, Glen Santangelo said the financial technology stock had upside to $84 – about a 30% premium on its current price.

The analyst reiterated his “buy” rating on Healthequity stock today citing the company’s strong footprint in health savings accounts. His research note reads:

Healthequity is expected to earn 20 cents a share in its current financial quarter versus 9 cents per share a year ago.

Healthequity is the provider of choice

Healthequity ranked above rivals Optum and Fidelity and was named the provider of choice in a recent Jefferies survey.

According to Glen Santangelo, the health stock has significant room for growth considering HSAs have not even penetrated 80% of the employer market yet. The said survey also revealed that over 60% of respondents expect increased HSA adoption this year.

The Utah-based company managed HSA assets worth $18 billion in 2021. Versus the start of the year, Healthequity stock is up about 7.0% at writing.