Jefferies has reduced its price target for Waystar Holding (NASDAQ:WAY) to $41 from $43, but the firm retained its Buy rating on the healthcare technology company. The revised target still implies substantial upside relative to the stock's current trading level of $25.42, a share price that has fallen 46.11% over the past 12 months.
In its note, Jefferies emphasized Waystar's fiscal 2026 organic EBITDA guidance as a central input that should shape market sentiment and trading around the name. The company’s current EBITDA stands at $391.95 million, and consensus forecasts for FY2026 earnings per share are $1.70. Analyst consensus, measured by the data in the InvestingPro service cited in the market commentary, shows a strong recommendation profile with a value of 1.22.
Jefferies pointed to tangible progress from the Iodine acquisition, saying the company is beginning to realize cross-selling opportunities and synergy capture. The analyst house framed those developments as strategic, noting that further confirmation that the deal is accretive to earnings would likely be supportive for the share price.
The firm also drew attention to management statements about Waystar’s competitive moat and its ability to integrate artificial intelligence into its product set. Jefferies characterized the company’s positioning to defend against encroachment by non-healthcare AI entrants as an important positive.
Taken together, Jefferies suggested these elements should underpin a near-term recovery in Waystar’s stock, assuming execution continues to validate the guidance and acquisition thesis.
Earnings and peer analyst actions
Waystar’s most recent quarterly results showed revenue and EBITDA that exceeded consensus estimates by 3.0% and 6.9%, respectively. The company’s initial EBITDA guidance for 2026 was modestly ahead of expectations, by 0.4%, while revenue guidance was in line with estimates.
Following those results, several brokerages adjusted their price targets. BMO Capital reduced its target to $30 from $47, citing uncertainty tied to artificial intelligence. TD Cowen and Truist Securities both trimmed targets to $42 and $38, respectively, while maintaining Buy ratings. Citizens lowered its target to $34, attributing the move to broader sector multiple compression.
Not all revisions were negative. Freedom Capital Markets upgraded Waystar from Hold to Buy after the company’s solid fourth-quarter performance and the 2026 outlook, while setting a new target of $33, down from $40. Freedom acknowledged AI disruption concerns but cited the company’s resilience as justification for the upgrade.
What to watch next
- Validation of FY2026 organic EBITDA versus guidance and consensus estimates.
- Further evidence of cross-selling and synergy capture from the Iodine acquisition.
- Execution on AI integration and management commentary about competitive differentiation.