Waystar upgraded to Strong Buy from Outperform at Raymond James

Raymond James upgraded Waystar (WAY) to Strong Buy from Outperform with an unchanged price target of $40. The stock’s current valuation does not reflect the potential durability of its double-digit growth amid broader secular shifts in healthcare to more modern technology, the analyst tells investors in a research note. The firm says Waystar is among the top performers across its vertical software coverage, with the company “boasting an impressive Rule of 60+ financial profile” exiting Q3. Despite this, the stock still trades at a significant discount to high-margin vertical software-as-a-service peers “as the story has flown under the radar of software investors,” contends Raymond James.