TD Cowen has cut its price target for Waystar Holding (NASDAQ: WAY) to $42 from $54, while leaving its rating on the stock at Buy. The broker cited concerns related to artificial intelligence as a key factor weighing on the company’s valuation.
Waystar shares were trading at $24.31 at the time of the report, well below the stock’s 52-week high of $48.11 and down about 46% over the past year. TD Cowen pointed to AI-related pressures as a driver of earlier share weakness and said such concerns are likely to remain an overhang on valuation.
Despite the headline reduction in the target, the firm noted fundamentals that suggest resilience. The company delivered fourth-quarter revenue and EBITDA results that beat expectations, and its last twelve months revenue reached $1.1 billion, an increase of 16.5% year-over-year, with reported EBITDA of $391.95 million. TD Cowen also described Waystar’s revenue guidance for fiscal 2026 as conservative.
Management has defended the business against AI competition by stressing the proprietary character of its data. TD Cowen indicated this management argument should be positively received by investors, even as it sees AI-related concerns continuing to affect multiples.
Market data cited in the firm’s note suggested the stock may be undervalued on certain metrics: InvestingPro data showed a price/earnings-to-growth (PEG) ratio of 0.16, a figure TD Cowen used to highlight relatively low valuation versus growth expectations.
Other analysts have taken differing approaches following Waystar’s quarter. The company posted fourth-quarter 2025 revenue of $304 million, a rise of 24% year-over-year, and delivered earnings per share of $0.36, above consensus forecasts. Following those results:
- Truist Securities reduced its price target to $38 from $51 but maintained a Buy rating.
- BMO Capital lowered its target to $30 from $47 despite revenue and EBITDA surpassing consensus.
- Freedom Capital Markets upgraded the stock to Buy from Hold and set a price target of $33, citing the quarter’s strength and a favorable fiscal 2026 outlook.
- Citizens trimmed its target to $34 from $48, attributing the change to broader sector multiples.
These adjustments illustrate a range of analyst views: some firms pared targets in line with a broader valuation reset among comparable software companies, while others moved more bullishly after the quarter.
TD Cowen’s overall position balances a maintained Buy rating against a lower price objective and explicit caution about AI-related valuation pressure. The firm’s characterization of guidance as conservative and the company’s recent top-line and EBITDA growth form the core factual elements underpinning that stance.