11:42 AM EDT, 07/26/2024 (MT Newswires) -- Waystar's ( WAY ) Q2 results, set to be released on Aug. 7, will likely demonstrate the company's ability to keep revenue growth above 10% and about 40% EBITDA margins, RBC Capital said in a note to clients Friday.

Waystar ( WAY ) has "industry-leading customer service/satisfaction and consistent ~110% revenue retention," RBC said, adding that the company also has a "broad portfolio of modular solutions [and] low penetration providing a long runway to both cross-sell and add new clients."

Also, "consistent execution over the coming quarters should help elevate [Waystar's ( WAY )] '25E EBITDA valuation closer to HCIT peers in the mid/high-teens," RBC said.

The investment firm said it is forecasting $214 million in Q2 revenue for the company, compared with the consensus estimate of $216 million. It also expects Q2 EBITDA of $83 million, compared with the consensus forecast of $84 million.

RBC has an outperform rating and a $27 price target on Waystar ( WAY ).

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