BofA Securities analyst Allen Lutz initiated coverage on Waystar Holding Corp. (NASDAQ:WAY) with a Buy rating and price forecast of $27.
According to Lutz, Waystar is well positioned for 10% revenue growth supported by steady end-market demand and recent competitive changes.
In addition, the cybersecurity attack on competitor Change Healthcare could drive Waystar's market share gains.
In response to the Change disruption in February, Waystar launched a program for impacted providers to expedite access to its platform within 2-3 days of contract execution.
The company initially added 30K provider customers and could add more over the next few quarters, the analyst adds.
Waystar operates in a $15 billion market, with stable ~40% margins over the next three years. Precisely, the company has a solid opportunity to expand its existing relationships with 18 of the top 22 hospitals and potential changes in the competitive environment can support further growth.
Over time, Lutz projects a structural shift in health systems, reducing dependence on Change by diversifying with independent vendors to guard against future cyber breaches. The analyst projects FY24 EPS of $0.20.
Goldman Sachs analyst Adam Hotchkiss initiated coverage on Waystar with a Buy rating and a $32 price forecast.
Per Hotchkiss, Waystar's comprehensive technology platform, addressing multiple points across the healthcare revenue cycle, is unique within a market dominated by point-solution technology vendors, manual processes, and healthcare IT services businesses.
The analyst adds that Waystar's deliberate combination of assets drives a more compelling sale to and partnership with larger hospitals and health systems. The analyst projects FY24 EPS of $0.21.
William Blair analyst Ryan Daniels initiates coverage on Waystar Holding with an Outperform rating.
For fiscal 2024, the analyst projects total revenue of $885 million, adjusted EBITDA of $351 million, and adjusted earnings per share of $0.19.
For fiscal 2025, Daniels projects revenue of $971 million, adjusted EBITDA of $380 million, and adjusted earnings per share of $0.69.
Price Action: WAY shares are trading higher by 0.46% to $21.61 at last check Tuesday.
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