On Friday, RBC Capital Markets adjusted its outlook on Waystar Holding (NASDAQ: WAY), raising the price target to $31.00 from the previous $27.00. The firm maintained its Outperform rating on the healthcare technology company's stock. The revision came after discussions with Waystar's management, which focused on the second quarter's revenue performance and the factors contributing to it.
The company's recent financial results have been significantly influenced by the Change Healthcare (NASDAQ:CHNG) outage, which was a notable topic during the management meeting. The outage had an impact on the healthcare industry, and Waystar's ability to navigate through it was a point of interest for the analysts.
RBC Capital's report highlights Waystar's robust presence in the market, emphasizing its role as a leading provider of Revenue Cycle Management (RCM) software. The firm's conviction in Waystar's stock is supported by the company's strong position in a growing end-market, which is seen as a positive driver for Waystar's financial prospects.
The analyst noted that Waystar's second quarter revenue outperformance was a key element of their positive assessment. The company's performance during this period was scrutinized, and the subsequent discussions provided clarity on the sustainability of the growth drivers behind the impressive revenue figures.
In conclusion, RBC Capital's increased price target reflects confidence in Waystar's market position and the underlying strength of its business model. The firm's Outperform rating suggests that Waystar is expected to continue its trajectory of financial success, underpinned by a healthy demand for its RCM software solutions.
In other recent news, Waystar Holding has been the subject of several analysts' evaluations. Goldman Sachs (NYSE:GS) reaffirmed its Buy rating for Waystar, highlighting the company's efficient onboarding of new customers and potential for future growth. The firm also noted Waystar's potential for AI monetization and strategic mergers and acquisitions.
In addition, Barclays (LON:BARC) initiated coverage on Waystar with an Overweight rating, emphasizing the company's consistent low double-digit revenue growth and impressive EBITDA margins. BofA Securities also began its coverage of Waystar with a Buy rating, projecting approximately 10% revenue growth for the next three years.
William Blair initiated coverage on Waystar, forecasting 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, praising the company's strong operating margins and history of organic growth.
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