ismagilov
BofA and J.P. Morgan initiated coverage of newly public healthcare payments platform Waystar (NASDAQ:WAY) with bullish ratings, with BofA seeing the company benefitting from the recent cyberattack on rival UnitedHealth Group’s (UNH) Change Healthcare.
BofA started coverage of Waystar with a buy rating, noting that the recent ransomware attack on Change “could drive market share gains for Waystar.” It pointed out that the company launched a program for providers impacted by the incident that gave them expedited access to their platform.
“Over time, we could see a structural shift in health systems reducing dependence on Change by diversifying with independent vendors to guard against future cyber breaches,” BofA added. The bank set its price objective for the stock at $27.
J.P. Morgan, meanwhile, started coverage with an overweight rating and a price target of $24.
The bank said it viewed Waystar’s business as “very sticky with a highly profitable model in a $15B TAM.”
“While the growth profile is not as high as others in JPMC’s space, it sees the likelihood for relatively reduced volatility in the results given supportive underlying market drivers as supportive of an Overweight thesis,” it added.
Waystar went public in early June, raising around $968M through an IPO.