Truist Securities on Tuesday lowered its price target for Waystar Holding (NASDAQ:WAY) to $38 from $51 while maintaining a Buy recommendation on the healthcare technology company. The firm reduced the valuation multiple it applies to Waystar to 15 times from 20 times previously, citing a recent re-rating among comparable software companies, and updated its financial model to reflect the change.
The adjustment comes against a backdrop of notable weakness in Waystar shares over the past year. The stock has fallen 46% year-over-year and is trading at $24.31, roughly 50% below its 52-week high of $48.11.
Despite the compressed multiple, InvestingPro data referenced by analysts indicates Waystar is trading at a PEG ratio of 0.16. That metric, as presented, suggests the stock may be inexpensive relative to its growth trajectory, though Truist's cut to the multiple reduced the firm’s headline price objective.
Waystar disclosed its fourth-quarter 2025 results and provided guidance for fiscal 2026 on February 17, 2026. In its initial review of the quarterly release, Truist described both the quarter and the forward outlook as strong. For the full year, the company delivered 16.5% revenue growth, with total revenue of $1.1 billion and a gross margin of 68.3%.
The company’s Q4 specifics were also favorable: revenue rose 24% year-over-year to $304 million, and earnings per share came in at $0.36, beating expectations. Following the earnings release, Truist held a follow-up call with Waystar management. In that call, the firm noted Waystar’s artificial intelligence positioning continues to strengthen as the company’s 2026 narrative evolves.
Several other brokerages adjusted their stances following Waystar’s results. Freedom Capital Markets upgraded the stock from Hold to Buy, pointing to the strong fourth-quarter performance and an encouraging fiscal 2026 outlook. At the same time, BMO Capital and Citizens trimmed their price targets to $30 and $34, respectively, while retaining constructive ratings - BMO with an Outperform rating and Citizens with a Market Outperform rating. BMO’s reduction was linked to AI uncertainties, while Citizens attributed its change to broader sector multiple compression.
Waystar’s initial guidance for 2026 provided modest upside on the EBITDA line relative to expectations, while revenue guidance was generally in line with consensus. The company’s emphasis on AI-driven solutions and acquisitions was highlighted by analysts as a factor that has strengthened its competitive position within the healthcare technology segment.
Taken together, recent analyst activity presents a mixed yet cautiously optimistic picture: price targets have been pared back to reflect valuation pressure across software peers, but multiple firms retained positive ratings after strong reported results and an encouraging outlook for 2026.
Market context
Analysts adjusted their models and recommendations in light of both company-specific performance and shifts in how investors are valuing software and technology businesses. The valuation multiple reset from Truist reflects that broader re-rating while acknowledging Waystar’s underlying revenue growth, margin profile, and strategic positioning around AI.
Bottom line - While Truist lowered its price target, the firm kept a Buy view on the shares. Other brokerages likewise balanced trimmed targets with sustained positive ratings after Waystar’s strong quarter and 2026 guidance.