Citizens reiterates Waystar stock rating, raises estimates on Iodine acquisition

Published 10/10/2025, 10:14
Citizens reiterates Waystar stock rating, raises estimates on Iodine acquisition

Investing.com - Citizens has reiterated its Market Outperform rating and $48.00 price target on Waystar Holding (NASDAQ:WAY), currently trading at $37.43, citing the positive impact of the company’s recently completed Iodine acquisition. The stock, which has demonstrated strong fundamentals with a GREAT Financial Health Score according to InvestingPro, has analyst targets ranging from $44 to $54.

The financial services firm identified WAY as its top pick within its healthcare information technology coverage and increased its earnings estimates based on the acquisition. With impressive revenue growth of 17.14% in the last twelve months, WAY has attracted attention from analysts, with 10 of them recently revising their earnings estimates upward. For deeper insights into WAY’s growth potential, InvestingPro offers exclusive analysis and additional ProTips.

Citizens expressed optimism about the potential impact from complementary Iodine solutions and opportunities for Waystar to continue gaining market share within the revenue cycle management space.

The firm revised its 2026 EBITDA estimate to $523 million from $468 million and its 2027 EBITDA estimate to $582 million from $515 million, reflecting accretion related to the Iodine acquisition.

Citizens noted that Waystar recently traded at 22 times its revised 2025 EBITDA estimate, while its $48 price target is based on applying a 21 times multiple to its revised 2026 EBITDA estimate.

In other recent news, Waystar Holding Corp. has completed its acquisition of Iodine Software for $1.25 billion. This acquisition is expected to enhance Waystar’s AI-powered payment software platform by integrating Iodine’s clinical documentation integrity business, which is projected to generate $120-125 million in revenue by 2025. The acquisition expands Waystar’s market by more than 15% and is anticipated to positively impact revenue growth and non-GAAP earnings per share by 2027. Mizuho has reiterated an Outperform rating for Waystar, maintaining a price target of $48.00, following the completion of the Iodine deal. Additionally, Waystar has been added to the S&P SmallCap 600 Index, highlighting its strong performance since its initial public offering. Citizens JMP has initiated coverage on Waystar with a Market Outperform rating and a $48.00 price target, citing the company’s cloud-based revenue cycle management software. In other developments, certain investment funds affiliated with EQT AB, Bain Capital, LP, and Canada Pension Plan Investment Board plan to sell 18 million shares of Waystar’s common stock in a secondary offering, with J.P. Morgan acting as the underwriter.

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