Truist reiterates Waystar stock rating on strong bookings growth

Truist Securities maintained a Buy rating and $33.00 price target on Waystar Holding (NASDAQ:WAY) after reviewing the company's impressive third-quarter results. Analysts across Wall Street express optimism, with a Strong Buy consensus among experts and price targets spanning from $28 to $44. At the current valuation of $28.14, the stock appears undervalued according to InvestingPro analysis.

The company achieved a 10% organic revenue growth in Q3, with year-to-date bookings soaring 25% year-over-year. Large-client bookings surged more than 30%, while the implementation backlog expanded by over 50%. These strong performances have caught the attention of analysts, 7 of whom have revised their earnings estimates upwards for the upcoming period.

Waystar's stock has gained a remarkable 34% over the past six months, providing a compelling return for investors. The company's updated guidance anticipates around 6% revenue growth in the fourth quarter, with management estimating a more robust 10% growth when accounting for factors like tough comparisons, the digital shift, and slower Iodine revenue conversion.

Notably, Waystar's Iodine business postponed the Pre-Bill Anomaly Detection rollout by approximately six months to enhance the product. The company faced a significant loss of a major client from the academic medical center sector, but this client has since returned and is demonstrating robust demand for Pre-Bill, a product with a longer implementation timeline and outcome-based pricing model.

Despite reporting a 43% adjusted EBITDA margin in Q3 and increasing its 2026 EBITDA guidance, Waystar experienced a 7.4% drop in the company's shares in after-hours trading due to concerns about near-term revenue growth expectations and a slower conversion of bookings into recognized sales. The company adjusted its full-year adjusted EBITDA guidance upward while lowering revenue growth expectations for the fourth quarter.

The adoption of AI-powered offerings accounted for 43% of third-quarter bookings, reflecting strong demand for new products. However, analysts have yet to publicly update their ratings following the earnings report, leaving investors closely monitoring Waystar's financial trajectory.