Needham & Company LLC Reiterates Buy Rating for Waystar (NASDAQ:WAY)

Key Points

• Needham reaffirmed its Buy rating on Waystar with a $33 price target, implying approximately 34.6% upside from the prior close.
• Waystar’s latest quarter exceeded expectations, with earnings of $0.43 per share versus $0.40 expected and revenue of $319.7 million, up 18.1% year over year.
• Analyst sentiment remains broadly positive: Waystar has a consensus rating of Moderate Buy and an average price target of $35.23, although some firms have recently downgraded the stock or lowered targets.

Waystar (NASDAQ:WAY - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Needham & Company LLC in a research note issued on Thursday,Benzinga reports. They presently have a $33.00 target price on the stock. Needham & Company LLC's target price would indicate a potential upside of 34.58% from the company's previous close.

A number of other equities research analysts have also recently commented on the company. UBS Group set a $34.00 target price on Waystar in a research note on Monday, July 20th. Wall Street Zen cut shares of Waystar from a "buy" rating to a "hold" rating in a research note on Sunday, May 24th. JPMorgan Chase & Co. reduced their price objective on shares of Waystar from $40.00 to $38.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Raymond James Financial reiterated a "strong-buy" rating and issued a $32.00 target price on shares of Waystar in a research note on Thursday, April 30th. Finally, Weiss Ratings lowered shares of Waystar from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, June 24th. Three research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Waystar presently has a consensus rating of "Moderate Buy" and an average target price of $35.23.

Waystar Price Performance

WAY stock opened at $24.52 on Thursday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.76 and a current ratio of 1.76. The firm has a 50 day moving average price of $20.73 and a 200-day moving average price of $23.31. Waystar has a 52-week low of $17.26 and a 52-week high of $41.47. The firm has a market capitalization of $4.70 billion, a price-to-earnings ratio of 36.60, a PEG ratio of 0.93 and a beta of 0.08.

Waystar (NASDAQ:WAY - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.03. Waystar had a return on equity of 6.99% and a net margin of 10.90%.The company had revenue of $319.67 million for the quarter, compared to the consensus estimate of $316.21 million. During the same quarter in the prior year, the business posted $0.36 EPS. The firm's quarterly revenue was up 18.1% compared to the same quarter last year. Equities research analysts forecast that Waystar will post 1.46 EPS for the current fiscal year.

Institutional Investors Weigh In On Waystar

A number of large investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB lifted its holdings in shares of Waystar by 52.2% during the 2nd quarter. Handelsbanken Fonder AB now owns 37,300 shares of the company's stock valued at $766,000 after buying an additional 12,800 shares during the period. Central Pacific Bank Trust Division grew its holdings in shares of Waystar by 32.4% in the second quarter. Central Pacific Bank Trust Division now owns 10,820 shares of the company's stock worth $222,000 after acquiring an additional 2,650 shares during the period. City Center Advisors LLC increased its position in Waystar by 43.6% during the second quarter. City Center Advisors LLC now owns 14,545 shares of the company's stock valued at $299,000 after acquiring an additional 4,417 shares during the last quarter. Essential Partners LLC lifted its holdings in Waystar by 1,432.7% in the first quarter. Essential Partners LLC now owns 1,548 shares of the company's stock valued at $37,000 after acquiring an additional 1,447 shares during the period. Finally, Bank of America Corp DE boosted its position in Waystar by 61.8% in the first quarter. Bank of America Corp DE now owns 2,065,258 shares of the company's stock worth $49,793,000 after purchasing an additional 789,132 shares during the last quarter.

Trending Headlines about Waystar

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: Waystar reported adjusted earnings of $0.43 per share versus the $0.40 consensus estimate, while revenue reached $319.7 million, ahead of the $316.2 million forecast. Revenue increased 18.1% year over year, and net income was $40.9 million. Waystar Reports Second Quarter 2026 Results
• Positive Sentiment: Strong profitability: The company posted a 43% adjusted EBITDA margin and $83.3 million in non-GAAP net income, supporting the view that Waystar is converting its healthcare-payment software growth into expanding cash-generating profitability. Waystar 2026 Q2 Results Presentation
• Positive Sentiment: Raised 2026 operating guidance: Waystar now expects revenue of $1.276 billion to $1.294 billion and adjusted EBITDA of $535 million to $545 million. The higher EBITDA outlook is particularly supportive for the stock because it signals continued margin strength and operating leverage. Waystar 2026 Guidance
• Neutral Sentiment: CFO transition: Alpana Wegner, an experienced technology CFO, will become chief financial officer on August 1. Her background may support Waystar’s growth and value-creation strategy, although investors may monitor execution during the leadership change. Waystar CFO Appointment
• Negative Sentiment: Revenue outlook may be slightly conservative: The new revenue range is near, but potentially below, the roughly $1.3 billion analyst consensus, meaning the guidance increase may not represent a significant upside surprise on sales. The company also did not provide a clearly stated EPS outlook in the available update.

Waystar Company Profile

Waystar NASDAQ: WAY is a leading provider of cloud-based revenue cycle management and payment solutions for healthcare organizations. The company's unified platform streamlines the entire financial continuum of patient care, from eligibility verification and claim submission to payment reconciliation and patient billing. By automating key processes and improving claim accuracy, Waystar helps providers reduce administrative overhead, accelerate cash flow and enhance overall revenue performance.

At the core of Waystar's offering is a SaaS-based architecture that integrates seamlessly with existing electronic health record (EHR) systems and payer networks.

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