Analyst Michael Infante of Morgan Stanley maintained a Buy rating on Clearwater Analytics Holdings (CWAN – Research Report), retaining the price target of $36.00.
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Michael Infante has given his Buy rating due to a combination of factors that suggest Clearwater Analytics Holdings is well-positioned for future growth. Despite recent underperformance compared to its vertical software peers, Infante views this as a temporary situation driven by tactical rather than fundamental issues, presenting a buying opportunity for investors. The company is expected to maintain its robust revenue growth outlook of approximately 19-20% year-over-year, even when accounting for near-term revenue growth dilution from Enfusion.
Infante highlights that the integration of recent acquisitions, such as Beacon and Bistro, is likely to contribute to margin leverage, which could offset any potential revenue dilution. Additionally, the anticipated clarity on pro-forma financials and updates on integration processes are expected to alleviate investor concerns, reinforcing the potential for continued growth. Overall, Infante’s analysis suggests that Clearwater’s strategic positioning and growth prospects make it a compelling investment opportunity.
In another report released on April 23, D.A. Davidson also maintained a Buy rating on the stock with a $36.00 price target.
Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CWAN in relation to earlier this year.