KeyBanc reiterates Waystar stock Overweight on AI moat strength

KeyBanc reiterates Waystar stock Overweight on AI moat strength

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow Investing.com - KeyBanc reiterated an Overweight rating and $30.00 price target on Waystar Holding (NASDAQ:WAY) shares. The firm said the stock is deeply undervalued amid concerns about AI disruption from third-party platforms, large electronic medical and health record systems embedding AI into their own platforms, and moderating healthcare utilization. InvestingPro data supports this view, indicating the stock is undervalued according to its Fair Value analysis.

The company’s PEG ratio of just 0.1 suggests significant value relative to its growth prospects, while revenue climbed 19% over the last twelve months. KeyBanc said Waystar has durable competitive advantages with a healthy pipeline and noted the company’s recent agentic AI launches further strengthen its competitive position to augment and leverage its database. The $30 price target is based on shares trading at approximately 12 times the firm’s fiscal 2027 adjusted EBITDA estimate one year from now, which is more in line with peer groups.

For deeper insights, InvestingPro offers comprehensive analysis including 6 additional ProTips and detailed Pro Research Reports covering Waystar and 1,400+ other US equities. KeyBanc said Waystar customers that switched from Change are sticky as health systems seek a new long-term partner. The firm said Waystar should continue to see renewal rates in the high 90% range, which are typically annual.

In other recent news, Waystar Holding reported first-quarter fiscal 2026 revenue of $313.9 million, surpassing UBS’s estimates by approximately 1.2%. The company’s subscription revenue also exceeded consensus expectations, reaching $172.2 million. Despite these strong results, Waystar maintained its full-year guidance.

Analysts have responded with mixed reactions; Goldman Sachs lowered its price target to $33, citing guidance, while UBS adjusted its target to $37, both maintaining a Buy rating. KeyBanc initiated coverage with an overweight rating, setting a price target of $30, noting a significant valuation disconnect. TD Cowen reiterated a Buy rating and maintained a $42 price target, following the positive earnings results.

Additionally, Waystar’s Board of Directors authorized a $200 million stock repurchase program, allowing the company to buy back shares under favorable conditions. These developments reflect ongoing investor interest and strategic financial maneuvers by the company.