Goldman Sachs analyst reiterates Buy rating on Waystar Holding Corp with $52 price forecast

From Yahoo Finance: 2025-03-25 13:49:00

Goldman Sachs analyst Adam Hotchkiss reiterated a Buy rating on Waystar Holding Corp. (WAY) with a price forecast of $52. Despite strong 2024 performance, the stock fell 14% since Q4 earnings, compared to a 6% drop in the S&P 500. Concerns include a modest increase in FY25 revenue guidance and the sustainability of FY24 tailwinds.

Hotchkiss is wary of Waystar’s ability to exceed expectations in the upcoming year and factors like potential quarterly beat-and-raise trends in FY25. Key elements for growth include stable gross retention, elevated healthcare utilization, and robust cross/upsell momentum. New customer acquisitions could reach the top-end of estimates.

In a bull scenario, the analyst foresees low double-digit growth in FY25 exceeding management’s guidance, with a modest acceleration in FY26. Price Action: WAY shares are up 0.18% at $39.06 at the last check. Key factors for growth include stable gross retention, elevated healthcare utilization, and strong cross/upsell momentum.

Read more: Goldman Sachs Analyst Weighs In