Clearwater Analytics Holdings, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Michael Infante from Morgan Stanley maintained a Buy rating on the stock and has a $27.00 price target.
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Michael Infante has given his Buy rating due to a combination of factors that suggest Clearwater Analytics Holdings is poised for growth. The company is expected to see an increase in organic net new Annual Recurring Revenue (ARR) as large deals contribute positively and sales efficiency improves post-integration. This optimism is further supported by the benefits from equities strength, which could enhance the company’s Assets Under Management (AUM).
Infante’s analysis indicates that the current stock price reflects a conservative growth estimate, suggesting that any positive developments could lead to significant stock appreciation. The company is trading at an attractive valuation compared to its peers, given its faster revenue growth and margin expansion. Key catalysts include contributions from recent large deals and improvements in sales efficiency, which are expected to drive sequential net new ARR trends and demonstrate the company’s medium-term growth potential.