Waystar Holding Corp. (WAY) has received a new Buy rating, initiated by BMO Capital analyst, .
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BMO Capital has given its Buy rating due to a combination of factors that highlight Waystar Holding Corp.’s strong market position and growth potential. The company’s integrated software solutions are crucial for healthcare providers, particularly in addressing billing and collection challenges. Waystar’s extensive data assets and strategic investments in AI position it well for sustained revenue growth and impressive EBITDA margins, which are expected to remain around 40%.
BMO Capital notes that Waystar’s valuation is attractive compared to other vertical software stocks, with a price target set at $47, valuing shares at 20 times the 2026 EBITDA. The company’s leading market share, innovative AI applications, and comprehensive solutions provide a competitive advantage, particularly in the revenue cycle management sector. Despite potential risks from competition and investor expectations, Waystar’s ability to cross-sell to its large client base and integrate AI capabilities is expected to drive continued growth and enhance shareholder value.
In another report released yesterday, Needham also initiated coverage with a Buy rating on the stock with a $46.00 price target.