Analyst Allen Lutz from Bank of America Securities maintained a Buy rating on Waystar Holding Corp. (WAY – Research Report) and increased the price target to $49.00 from $48.00.
Allen Lutz’s rating is based on Waystar Holding Corp.’s strong performance in the first quarter of 2025, where the company demonstrated significant growth in both subscription and volume segments. This growth was partly due to the initial onboarding of 30,000 providers following a cybersecurity incident at a competitor, which has positioned Waystar as a preferred choice for hospitals looking to revise their revenue cycle strategies. The company’s ability to maintain and potentially expand its market share in the hospital sector supports the Buy rating.
Furthermore, Allen Lutz has raised the revenue and EBITDA estimates for fiscal years 2025 and 2026, reflecting sustained demand for Waystar’s solutions and improved operating leverage. The company’s focus on AI initiatives, cross-sells, upsells, and cybersecurity readiness are key areas to watch, along with the execution of long-term targets for revenue growth and EBITDA margins. These factors contribute to the positive outlook and the increased price objective of $49.
In another report released today, Barclays also maintained a Buy rating on the stock with a $45.00 price target.