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On Thursday, Truist Securities analyst Jailendra Singh increased the price target for Waystar Holding (NASDAQ:WAY) shares from $45.00 to $50.00, while maintaining a "Buy" rating on the stock. The stock, currently trading at $41.03, has demonstrated remarkable momentum with a 98.21% return over the past year. According to InvestingPro data, analyst targets now range from $45 to $51, with a strong consensus recommendation of 1.33 (Strong Buy). Singh noted Waystar as one of the consistently strong performers in the Healthcare Information Technology (HCIT) sector, particularly highlighting the company’s successful integration of Change Healthcare (NASDAQ:CHNG) clients. The company’s strong performance is reflected in its robust financial health, earning a "GREAT" overall score on InvestingPro’s comprehensive assessment system, with particularly high marks in growth and price momentum metrics.
Waystar reportedly experienced robust Request for Proposal (RFP) activity, demand, and win rates among the Change clients that were onboarded in 2024. The company also boasted excellent retention rates within this group, aligning with the overall client retention across its business. The $10 million benefit mentioned in the quarter was attributed to faster-than-expected implementation timelines for these Change-cohort clients early in 2024, which should not be seen as a reflection of current activities such as cross-selling or up-selling opportunities.
Singh’s commentary further detailed that these Change-related clients are now contributing to Waystar’s core revenue. The company has already demonstrated strong revenue growth of 18.25% in the last twelve months, with current revenue at $975.19 million. In response to these developments, Truist Securities has updated its revenue estimates for Waystar for the years 2025 and 2026 to $1,019 million and $1,130 million, respectively, up from previous estimates of $1,009 million and $1,120 million. For deeper insights into Waystar’s growth trajectory and detailed financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks. Adjusted EBITDA estimates for the same years have also been revised to $412 million and $457 million, from $410 million and $456 million.
The new $50 price target is based on the expectation that Waystar shares will trade at 22 times the firm’s updated 2026 adjusted EBITDA estimate 12 months from now. This revision reflects the analyst’s positive outlook on the company’s financial performance and market position.
In other recent news, Waystar Holding Corp reported a strong first quarter for 2025, showcasing a 14% increase in revenue year-over-year, totaling $256.4 million. The company’s adjusted EBITDA also rose by 16%, reaching $108 million, with a margin of 42%. Following these results, Waystar has raised its full-year revenue guidance to a range between $1,060 million and $1,022 million, reflecting their confidence in sustained growth. The company has launched new AI-powered solutions, such as AltitudeAI, aimed at enhancing operational efficiency and revenue growth. Canaccord Genuity recently adjusted its price target for Waystar to $47, down from $50, while maintaining a Buy rating, citing the company’s ability to improve revenue collections at a lower cost. The firm remains optimistic about Waystar’s market share gains and growth potential among existing clients. Waystar’s focus on AI and automation has been a significant driver of its market position, with strong demand from healthcare providers for its innovative solutions.
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