Waystar Holdings upgraded to Outperform, target set at $25

Published 02/07/2024, 10:54
Waystar Holdings upgraded to Outperform, target set at $25

On Tuesday, Waystar Holding (NASDAQ:WAY) received a new Outperform rating from Evercore ISI, with a price target of $25.00. The firm highlighted Waystar's comprehensive healthcare IT (HCIT) software solutions that cater to both payor and patient needs through various services, including clearinghouse operations, patient engagement, and payment solutions.

Waystar's extensive client base, which includes more than 30,000 clients and 18 of the top 22 US hospitals, was emphasized as a key strength. The company's recent acquisitions have significantly broadened its capabilities, positioning it to effectively cross-sell to its established customer base.

The company's financial health was noted, with Waystar boasting approximately 40% operating margins and a history of greater than 10% organic growth in recent years. These factors contribute to Waystar's distinction within the HCIT sector.

Evercore ISI also pointed out that Waystar's current valuation is compelling, trading at roughly 14 times its estimated 2024 EBITDA and less than 13 times its projected 2025 EBITDA. Moreover, potential market share gains were mentioned due to recent issues faced by a competitor, which could lead to an increase in customers seeking to diversify their clearinghouse options.

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