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On Thursday, Canaccord Genuity adjusted its price target for Waystar Holding (NASDAQ:WAY) to $47.00, a decrease from the previous $50.00, while sustaining a Buy rating on the stock. The adjustment follows Waystar’s first quarter report, which showed a 3.5% revenue and 9.8% adjusted EBITDA increase over Canaccord’s estimates. According to InvestingPro data, the company has demonstrated remarkable performance with a 79.57% return over the past year, while maintaining a "GREAT" financial health score of 3.09. Waystar’s performance has reinforced the firm’s position as one of Canaccord’s focus names for 2025.
Waystar began the year with strong momentum, with approximately 98% of its expected revenue already under contract, and exhibiting elevated volume trends. The company’s robust revenue growth of 19.28% and strong liquidity position (current ratio of 2.55) support this outlook. Canaccord believes that Waystar’s current trajectory indicates a possibility for future positive revisions to its performance forecasts. InvestingPro analysis reveals 5 analysts have revised their earnings upwards for the upcoming period, with price targets ranging from $45 to $55. The management’s cautious approach regarding the financial impact of their Gen AI opportunity was noted, but Canaccord is optimistic about Waystar’s potential for market share gains and enhanced growth among existing clients.
The introduction of AltitudeAI, which includes Create, Assist, and Predict functions, presents Waystar with an opportunity to "price to value," according to the analyst. These innovations are expected to underpin sustained double-digit revenue growth with high margins. Despite acknowledging that Waystar is not immune to economic downturns, management expressed confidence in the company’s resilience, even in the face of potential policy changes that could pose challenges for its healthcare provider clients.
Canaccord’s outlook on Waystar is increasingly positive, citing the company’s ability to improve revenue collections at a lower cost, thereby enhancing its overall value proposition. The firm encourages the purchase of Waystar shares and reaffirms its status as a top pick for 2025. The price target revision to $47 reflects a multiple contraction among Waystar’s peer group, as explained by Canaccord Genuity. With a market capitalization of $6.4 billion and current trading price of $37.17, InvestingPro analysis suggests the stock is currently overvalued based on its Fair Value calculations. Discover more insights and 8 additional ProTips about Waystar in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Waystar Holding Corp reported a strong performance for the first quarter of 2025, with a 14% increase in revenue year-over-year, reaching $256.4 million. The company also saw a 16% rise in adjusted EBITDA to $108 million, maintaining a 42% adjusted EBITDA margin. Waystar has raised its full-year revenue guidance to between $1,060 million and $1,022 million, signaling confidence in continued growth. The company has launched new AI-powered solutions, enhancing its product portfolio and market position. Analysts have noted the robust demand for Waystar’s innovative solutions, particularly from healthcare providers. Waystar’s net revenue retention rate stands at 114%, reflecting strong client relationships and sustained demand. The company continues to explore potential mergers and acquisitions, alongside its investment in AI and automation capabilities.
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