Charles Rhyee, an analyst from TD Cowen, maintained the Buy rating on Waystar Holding Corp.. The associated price target remains the same with $54.00.
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Charles Rhyee has given his Buy rating due to a combination of factors that suggest Waystar Holding Corp. is poised for strong performance. The company is expected to surpass its third-quarter financial targets, driven by robust utilization rates in hospitals, which have been higher than initially anticipated. This positive trend is supported by recent hospital survey data indicating a 4% increase in adjusted discharges, compared to the 1-2% growth embedded in Waystar’s guidance.
Furthermore, Rhyee views the company’s 2025 adjusted EBITDA guidance as conservative, with potential for upward revisions, particularly following the acquisition of Iodine. The expected strong utilization and potential for higher EBITDA margins in the second half of the year contribute to the optimistic outlook. Additionally, there is potential revenue upside from cross-selling opportunities to former Change Healthcare customers, which has already proven beneficial in previous quarters. These factors collectively underpin Rhyee’s confidence in Waystar’s growth prospects, justifying the Buy rating.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $49.00 price target.
Based on the recent corporate insider activity of 107 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.