Did UBS’s Bullish Initiation on Waystar Holding (WAY) Just Shift Its Investment Narrative?

• Earlier this week, UBS analyst Kevin Caliendo initiated coverage on Waystar Holding with a buy rating, marking the bank’s first formal opinion on the healthcare payments software provider.
• This new coverage from a major global bank signals growing institutional attention on Waystar’s role in digitizing and automating healthcare revenue cycles.
• Now we’ll explore how UBS’s bullish initiation potentially reinforces Waystar’s AI-driven growth narrative and the market’s expectations for future profitability.

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Waystar Holding Investment Narrative Recap

To own Waystar, you need to believe that its software and AI can keep simplifying how money flows through the healthcare system, supporting durable revenue and earnings. UBS’s new coverage does not materially change the near term focus on integrating Iodine while managing higher leverage, nor does it remove the key risk that larger health systems and competitors could pressure pricing and margins.

The most relevant recent milestone here is Waystar’s Q3 2025 update, where management raised full year 2025 revenue guidance to US$1.085 to US$1.093 billion. That guidance increase sits in the background of UBS’s positive initiation and ties directly into the central catalyst for the stock: whether Waystar can keep converting higher volumes and AI driven automation into sustained profitability while carrying more debt.

But while that growth story is appealing, investors need to be aware of the risk that heavier leverage after the Iodine deal could...

Read the full narrative on Waystar Holding (it's free!)

Waystar Holding’s narrative projects $1.3 billion revenue and $248.3 million earnings by 2028. This requires 9.3% yearly revenue growth and about a $162 million earnings increase from $85.9 million.

Uncover how Waystar Holding's forecasts yield a $48.74 fair value, a 50% upside to its current price.

Exploring Other Perspectives

Seven Simply Wall St Community fair value estimates for Waystar range from US$15.96 to US$48.74, underlining how far apart individual views can be. Set those diverse opinions against the central question of whether Waystar’s Iodine fueled expansion can overcome higher leverage and potential pricing pressure, and it becomes clear you should compare several viewpoints before deciding how this stock might fit your portfolio.

Explore 7 other fair value estimates on Waystar Holding - why the stock might be worth as much as 50% more than the current price!

Build Your Own Waystar Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Waystar Holding research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Waystar Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Waystar Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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