Analysts Rally Behind Waystar: Predict Robust Growth and Market Share Gains Following Competitor Setback

BofA Securities analyst Allen Lutz initiated coverage on Waystar Holding Corp. 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.

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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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