Analyst Allen Lutz from Bank of America Securities maintained a Buy rating on Waystar Holding Corp. and keeping the price target at $49.00.
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Allen Lutz has given his Buy rating due to a combination of factors related to Waystar Holding Corp.’s recent innovations and market opportunities. The company has introduced new features on its AltitudeAI platform, which significantly enhance the efficiency of handling claims denials. These improvements allow healthcare providers to reduce the time spent on appeals and increase the rate of overturning denials, which is expected to save costs and improve operational efficiency.
Additionally, Waystar’s focus on expanding its patient payment solutions presents a substantial opportunity for margin expansion. By shifting from paper to mobile payment methods, the company can significantly reduce costs and improve its EBITDA margins. The adoption of AI tools and the anticipated shift in payment methods are likely to drive market share gains, positioning Waystar as a leader in its field. These strategic advancements underpin Lutz’s confidence in the company’s growth prospects and justify the Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $43.00 price target.