Morgan Stanley analyst Michael Infante maintained a Buy rating on Clearwater Analytics Holdings today and set a price target of $27.00.
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Michael Infante has given his Buy rating due to a combination of factors that highlight Clearwater Analytics Holdings’ potential for growth and market differentiation. The company’s core platform stands out in the industry, especially with its integration capabilities, which are not yet fully reflected in the current stock valuation. Despite the ongoing integration of acquired assets, Clearwater continues to innovate and release new products, indicating a strong pipeline for future adoption.
Furthermore, the company has announced significant developments, such as an expansion deal with a U.S. bank for a compliance solution tailored to government clients, and new modules for private credit operations. These initiatives, along with a promising partnership with Bloomberg and plans for monetizing GenAI functionality, suggest that Clearwater’s integrated platform could achieve high-teens growth by 2026. However, the stock is currently trading at a lower EBITDA multiple compared to its peers, presenting a potential investment opportunity as the market may not yet fully appreciate its growth prospects.
According to TipRanks, Infante is an analyst with an average return of -0.3% and a 50.00% success rate.