Waystar Holding Corp. (WAY) has received a new Buy rating, initiated by Truist Financial analyst, Jailendra Singh.
Jailendra Singh has given his Buy rating due to a combination of factors that highlight Waystar Holding Corp.’s potential for growth and market leadership. The company is poised to benefit from the ongoing transformation in healthcare payments, where there is a growing demand for automated software solutions to enhance efficiency and reduce administrative tasks. Waystar’s strategic approach, which includes expanding client relationships, growing its client base, and innovating new solutions, positions it well to outperform the provider software solutions market.
Waystar’s financial performance further supports the Buy rating, with a projected revenue CAGR of 15% from 2021 to 2025 and a strong gross revenue retention rate. The company’s robust market presence, serving over 30,000 clients and facilitating billions of healthcare transactions, underscores its role as a leader in cloud-based healthcare payment solutions. Additionally, the cybersecurity incident involving Change Healthcare has provided Waystar with growth tailwinds, as clients explore alternatives and engage with Waystar’s platform. Singh’s price target of $45 reflects the expectation that Waystar’s shares will trade at a higher multiple, given its attractive financial profile and market opportunities.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WAY in relation to earlier this year.