Waystar (WAY) management reaffirmed guidance for low-double-digit revenue growth and a 40% adjusted EBITDA margin, with Altitude AI serving as a key catalyst, though the lack of new key performance indicators was disappointing, RBC Capital Markets said Thursday following the company's inaugural Investor Day.

The 2027 setup favors a meet-and-beat as large bookings are set to convert following a sales cycle of approximately 18-months, which was elongated by AI governance reviews, according to the note.

The brokerage said the new Altitude AI platform and a growing portfolio of agentic products represent a meaningful cross-sell opportunity.

Waystar reiterated its framework for maintaining low-double-digit revenue growth, supported by more than 97% gross revenue retention, 108% to 110% net revenue retention, and approximately 70% EBITDA-to-free cash flow conversion. New customers account for about 40% of bookings and represent the final building block for low-double-digit growth, the note added.

The company also emphasized its proprietary data as competitively differentiated from electronic health record-native platforms, the brokerage said.

RBC kept an outperform rating on Waystar with a price target of $44.

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