Street Calls of the Week
Investing.com - Waystar Holding (NASDAQ:WAY) received its initial coverage from Citizens JMP on Thursday, with the firm assigning a Market Outperform rating and a $48.00 price target. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $44 to $54, while the stock currently trades at $38.59.
JMP highlighted Waystar’s cloud-based revenue cycle management software platform, which serves more than 30,000 healthcare clients including hospitals, health systems, provider clinics, and post-acute provider organizations.
The firm noted that Waystar’s platform aims to simplify complex healthcare payment workflows through its unified, AI-enhanced solutions that improve reimbursement accuracy, reduce denials, and increase transparency and efficiency across the healthcare system.
JMP pointed to several favorable industry conditions supporting demand for innovative revenue cycle management software, including reimbursement pressure, labor and workforce constraints, and complex reimbursement changes.
The firm also cited process variability between payors and the prevalence of high-deductible health plans as factors creating a conducive environment for Waystar’s offerings.
In other recent news, Waystar Holding Corp reported its second-quarter 2025 earnings, exceeding forecasts with earnings per share of $0.36 and revenue of $271 million, marking a 15% increase in revenue compared to the previous year. The company has also adjusted its full-year revenue guidance upwards. In a strategic financial move, Waystar successfully repriced its first lien term loan due October 2029, reducing the interest rate by 25 basis points to adjusted SOFR +2.00%. Additionally, the company plans to add $250 million in incremental term loans to support its acquisition of Iodine Software.
Furthermore, certain investment funds associated with EQT AB, Bain Capital, and the 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 be selling any shares or receiving proceeds from this transaction. In analyst coverage, Baird initiated coverage on Waystar with an Outperform rating and a price target of $44.00, citing the company as a "high-quality business and FCF compounder." These developments highlight Waystar’s ongoing strategic and financial activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.