Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Mizuho has reiterated an Outperform rating and $48.00 price target on Waystar Holding (NASDAQ:WAY) following the company’s completion of its $1.25 billion Iodine acquisition. The stock currently trades at $38.56, with analyst targets ranging from $44 to $54, according to InvestingPro data, which shows the company maintains a GREAT financial health score.
The financial services firm noted that Iodine, a KLAS-ranked AI platform, is expected to generate $120-125 million in revenue for 2025, primarily from its clinical documentation integrity (CDI) business. Iodine’s AI data tools help healthcare providers reduce denied claims by improving documentation accuracy before submission to managed care organization payors. With a strong current ratio of 3.43 and revenue growth of 17.14% in the last twelve months, Waystar shows robust operational performance. (InvestingPro subscribers can access 8 more key insights about Waystar’s financial health.)
Mizuho expressed positive sentiment toward the transaction, stating it helps complete Waystar’s revenue cycle management platform strategy while increasing the company’s total addressable market by more than 15%.
Following the acquisition, Mizuho has adjusted its earnings per share estimates for Waystar, raising its 2026 EPS forecast from $1.60 to $1.61 and its 2027 projection from $1.83 to $1.85. These revised estimates remain above the Street consensus for both years.
Mizuho maintained its $48 price target on Waystar stock and indicated it anticipates further updates when the company reports third-quarter 2025 results in early November.
In other recent news, Waystar Holding Corp. has completed its acquisition of Iodine Software, aiming to enhance its AI-powered payment software platform by integrating financial and clinical healthcare datasets. This strategic move is expected to expand Waystar’s market by over 15% and positively impact revenue growth and non-GAAP earnings per share by 2027. Additionally, Waystar has been added to the S&P SmallCap 600 Index, reflecting its substantial presence in the healthcare payment software industry, where it serves over one million healthcare providers and processes more than $1.8 trillion in gross claims annually.
Moreover, Waystar received initial coverage from Citizens JMP with a Market Outperform rating, highlighting its cloud-based revenue cycle management software platform. Baird also initiated coverage with an Outperform rating, noting the company’s strong market positioning. In a separate development, investment funds affiliated with EQT AB, Bain Capital, and Canada Pension Plan Investment Board announced plans to offer 18 million shares of Waystar’s common stock in a secondary offering, with J.P. Morgan acting as the underwriter. Waystar will not sell any shares or receive proceeds from this transaction.
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