William Blair analyst Ryan Daniels has maintained their bullish stance on WAY stock, giving a Buy rating yesterday.
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Ryan Daniels has given his Buy rating due to a combination of factors surrounding Waystar Holding Corp.’s strategic acquisition of Iodine Software. The $1.25 billion acquisition, funded equally with cash and stock, is expected to significantly enhance Waystar’s AI capabilities, particularly in the revenue cycle management (RCM) sector for healthcare providers.
Iodine Software’s established presence, with over 15 years of experience and a robust suite of AI-based solutions, positions Waystar to advance its competitive edge. The acquisition is anticipated to expand Waystar’s market reach by approximately 15%, translating to an additional $2.5 billion in addressable market. This strategic move is seen as both a financial and strategic gain, given Iodine’s strong client relationships and leading AI capabilities, which are expected to drive efficiency and revenue capture for Waystar.
Daniels covers the Healthcare sector, focusing on stocks such as Addus Homecare, Evolent Health, and Healthcare Services. According to TipRanks, Daniels has an average return of 4.9% and a 43.18% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $49.00 price target.