In a report released today, Allen Lutz from Bank of America Securities reiterated a Buy rating on Waystar Holding Corp., with a price target of $52.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Allen Lutz has given his Buy rating due to a combination of factors, including Waystar Holding Corp.’s impressive financial performance and strategic positioning. The company reported strong revenue, EBITDA, and EPS growth that surpassed market expectations, driven by double-digit organic growth. This growth is supported by an increasing demand for their services, particularly in the hospital sector, which has been further catalyzed by a competitor’s cybersecurity issues.
Moreover, Waystar’s proactive investments in technology and AI have positioned it as a leading vendor in the market. The company’s strong EBITDA-to-free cash flow conversion allows for continued investment in AI capabilities, setting it apart from competitors. Additionally, the recent acquisition of Iodine is expected to contribute positively to future revenue and EBITDA, prompting an upward revision of financial estimates for 2025 and 2026. These factors collectively reinforce the Buy rating and the increase in the price objective to $52.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $41.00 price target.
Based on the recent corporate insider activity of 111 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.