Goldman Sachs sees Waystar stock benefiting from accelerated customer onboarding

On Wednesday, Goldman Sachs reaffirmed its Buy rating and $34.00 price target for Waystar Holding (NASDAQ:WAY) stock, following a virtual non-deal roadshow (NDR) held on August 20th with CEO Matt Hawkins (NASDAQ:HWKN) and VP Sandy Draper.

The discussions during the NDR focused on Waystar's robust pipeline and revenue prospects, particularly in light of a recent cyberattack on its competitor, Change Healthcare (NASDAQ:CHNG).

The firm also examined the drivers behind Waystar's second-half revenue outlook and the sustainability of cross-selling opportunities post-cyberattack.

The Goldman Sachs analyst highlighted Waystar's effective management execution in rapidly onboarding new customers following the Change Healthcare incident, noting a significant reduction in sales cycles for large clients. The analyst pointed out that what previously took up to 18 months now only requires 3-4 weeks.

This efficiency underscores Waystar's technology platform's flexibility and adaptability in the current market environment. This is expected to attract more referenceable customers and potentially accelerate a broader demand shift towards comprehensive revenue cycle management (RCM) technology.

In addition to the technology platform's strengths, Goldman Sachs emphasized Waystar's well-structured sales and marketing strategy. This approach is believed to be conducive to sustainable cross-selling, bolstering the firm's confidence in Waystar's potential for durable, low-teens growth. The analyst's reiterated Buy rating and 12-month price target reflect this optimism about the company's growth trajectory and market position.

Waystar's management also discussed the potential for AI monetization and strategic mergers and acquisitions as longer-term areas of opportunity.

These elements contribute to the company's positive outlook as it continues to navigate the competitive landscape of healthcare technology and revenue cycle management.

The reaffirmed price target and Buy rating by Goldman Sachs indicate steady confidence in Waystar's business strategy and ability to capitalize on current market opportunities despite the industry's challenges.

In other recent news, Waystar Holding has been the focus of numerous analyst evaluations. Barclays initiated coverage on Waystar, assigning an Overweight rating and setting a price target of $24.00, highlighting the company's consistent low double-digit revenue growth and impressive EBITDA margins around 40%.

Similarly, BofA Securities initiated coverage with a Buy rating and a $27.00 price target, forecasting approximately 10% revenue growth for the next three years.

William Blair also initiated coverage on Waystar, predicting a significant revenue increase for the fiscal years 2024 and 2025, with total revenue estimated at $885 million and $971 million, respectively.

Evercore ISI upgraded Waystar to an Outperform rating, setting a target price at $25, and praised the company's strong operating margins and history of organic growth.

Goldman Sachs initiated coverage on Waystar with a Buy rating and a price target of $32, noting the company's impressive adjusted EBITDA margins exceeding 40%.

Lastly, JPMorgan assigned an Overweight rating to Waystar, emphasizing its significant market presence and stable revenue cycle management functions. These are the recent developments concerning Waystar, reflecting a positive outlook from various financial firms.

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