HealthEquity: Attractive Given Improved Cash Economics (Rating Upgrade)

HealthEquity is upgraded to a buy, with ~25% upside potential over the next year as custodial revenue normalizes and legislative tailwinds strengthen. Shares trade at ~17x forward earnings, with EPS expected to grow 15% in FY27 and at least 10% in calendar 2027, driven by repricing of cash yields. Secular HSA account growth, an improved legislative environment, and rising custodial yields underpin HQY's earnings visibility and margin expansion.