Loan Terms Improvement: Waystar Holding has secured better terms on its first lien term loan, reducing the interest rate by 25 basis points and adding $250 million for the acquisition of Iodine Software, reflecting lender confidence in the company's financial stability.
Acquisition Impact: The acquisition of Iodine Software is expected to expand Waystar's market significantly, enhance gross margins, and drive long-term revenue growth, with analysts projecting a fair value of $50.38 for the stock, indicating it is currently undervalued.
Analyst Perspectives: While there is optimism regarding Waystar's future profits linked to tech and automation growth, concerns remain about potential financial strain from increased leverage and revenue volatility due to industry changes.
Valuation Concerns: Despite positive forecasts, some analysts caution that Waystar's valuation is higher compared to similar healthcare stocks, raising questions about whether the market may be overly optimistic about its growth prospects.
WAY
$32.9+Infinity%1D
Analyst Views on WAY
Wall Street analysts forecast WAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAY is 49.13 USD with a low forecast of 40.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
Wall Street analysts forecast WAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAY is 49.13 USD with a low forecast of 40.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 32.560
Low
40.00
Averages
49.13
High
54.00
Current: 32.560
Low
40.00
Averages
49.13
High
54.00
UBS
Kevin Caliendo
initiated
$41
2025-12-15
New
Reason
UBS
Kevin Caliendo
Price Target
$41
2025-12-15
New
initiated
Reason
UBS analyst Kevin Caliendo initiated coverage of Waystar with a Buy rating and $41 price target. The firm says Waystar is a leading cloud-native revenue cycle management platform that is positioned to "capture a multi-year secular shift" toward automation, electronic transactions, and AI-enabled workflows across provider organizations. UBS expects low-double-digit sales and low-to mid-teens EBITDA growth.
Barclays
Glen Santangelo
Overweight
to
Overweight
downgrade
$50 -> $42
2025-12-08
Reason
Barclays
Glen Santangelo
Price Target
$50 -> $42
2025-12-08
downgrade
Overweight
to
Overweight
Reason
Barclays analyst Glen Santangelo lowered the firm's price target on Waystar to $42 from $50 and keeps an Overweight rating on the shares following a transfer of coverage. The firm also started the U.S healthcare technology and distribution industry with a neutral view. Barclays is most bullish on the drug distributors and has a more mixed view of the dental and healthcare information technology sub-sectors.
Freedom Capital
Hold
initiated
$40
2025-11-20
Reason
Freedom Capital
Price Target
$40
2025-11-20
initiated
Hold
Reason
Freedom Capital initiated coverage of Waystar with a Hold rating and $40 price target. While the firm thinks claims processing and denials management is "way" overdue for a modernized approach and that the company has "an impressive end-end platform," it says its Hold rating is predicated largely on valuation.
BMO Capital
Outperform
initiated
$47
2025-11-12
Reason
BMO Capital
Price Target
$47
2025-11-12
initiated
Outperform
Reason
BMO Capital initiated coverage of Waystar with an Outperform rating and $47 price target. Waystar's integrated software helps healthcare providers address major billing and collections challenges, the analyst tells investors in a research note. Its strong data assets, AI investments, and long runway for expansion support sustained low double-digit revenue growth and 40% EBITDA margins, offering a growth and margin profile similar to other vertical software peers but at a more attractive valuation, the firm says.
About WAY
Waystar Holding Corp. provides healthcare organizations with mission-critical cloud software that simplifies healthcare payments. The Company’s enterprise-grade platform, Waystar, streamlines the complex processes. It leverages internally developed artificial intelligence (AI) as well as proprietary, advanced algorithms to automate payment-related workflow tasks and drive continuous improvement, which enhances claim and billing accuracy, enriches data integrity, and reduces labor costs for providers. Its software is used daily by providers of all types and sizes across the continuum of care, including physician practices, clinics, surgical centers, and laboratories, as well as large hospitals and health systems. The Company’s clients utilize its software to manage pre-encounter workflows, such as eligibility checks and prior authorization approvals, as well as mid- and post-encounter workflows, such as co-pay collection, claims submission and monitoring, and payer remittances.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
