NEW YORK (TheStreet) -- Healthequity (HQY - Get Report) stock rose 0.13% to $30.69 as Leerink increased its price target to $35 from $29 and maintained an "outperform" rating.

The company's largest partners are medium-sized health plans that, along with Healthequity's services, can compete with national insurance companies.

Healthequity's management believes medium-sized health plans are gaining traction among employers transitioning to coverage with high deductibles, which in turn increases health savings accounts, like those offered by the company, according to analysts.

Moreover, the consolidation trend in the health insurance industry is not concerning to management, as they believe that mergers can lead to short term risks that allow competitors to take advantage, analysts added.

Analysts also increased its five year revenue compound annual growth rate to 32% from 30%.

Healthequity offers services to manage health care accounts for insurance companies and third party administrators. Consumers can access bills, tax savings, reimbursement, pricing and more healthcare related information through the company's platform.

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