Bank of America Securities analyst Allen Lutz reiterated a Buy rating on Waystar Holding Corp. (WAY – Research Report) yesterday and set a price target of $51.00.
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Allen Lutz has given his Buy rating due to a combination of factors including Waystar Holding Corp.’s impressive financial performance in the fourth quarter of 2024, where the company exceeded market expectations for both revenue and EBITDA. The increase in volume-based revenue played a significant role in this outperformance, reflecting the growing importance of Waystar’s platform. Additionally, the acceleration in growth of clients generating substantial revenue and an improvement in net revenue retention signal the company’s strengthening market position.
While the 2025 revenue guidance may appear conservative, Allen Lutz sees potential for operating leverage due to the platform’s increasing relevance. The company’s guidance for adjusted EBITDA margins is slightly ahead of market estimates, suggesting robust operational efficiency. Furthermore, the analyst highlights the benefits from Change in 2024 as a positive factor, indicating potential for further gains. These elements, coupled with a raised price objective and valuation multiple, support the Buy recommendation.
In another report released today, Barclays also maintained a Buy rating on the stock with a $50.00 price target.