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Clearwater Analytics Holdings: Strong Growth Prospects and Strategic Synergies Justify Buy Rating

Clearwater Analytics Holdings: Strong Growth Prospects and Strategic Synergies Justify Buy Rating

Michael Infante, an analyst from Morgan Stanley, maintained the Buy rating on Clearwater Analytics Holdings (CWANResearch Report). The associated price target remains the same with $36.00.

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Michael Infante has given his Buy rating due to a combination of factors highlighting Clearwater Analytics Holdings’ strong growth prospects. The recent fireside chat with CFO Jim Cox reinforced confidence in the company’s growth durability, both as a standalone entity and in its pro-forma state post-Enfusion acquisition. Infante notes that Clearwater is on track to exceed its high-end revenue expectations for the year, with a projected 21% organic growth rate, which aligns with prior forecasts.
Additionally, Clearwater has effectively executed $20 million in cost synergies, and the company anticipates that the terminal margins between Enfusion and Clearwater will be comparable at maturity. These factors, combined with the expectation of long-term EBITDA per share accretion, support the optimistic outlook. Infante’s analysis suggests that even under various revenue growth and margin scenarios, Clearwater remains well-positioned for continued financial success, justifying the Buy rating.

According to TipRanks, Infante is a 2-star analyst with an average return of 5.0% and a 55.56% success rate. Infante covers the Technology sector, focusing on stocks such as Clearwater Analytics Holdings, nCino, and Q2 Holdings.

In another report released on May 26, Wells Fargo also maintained a Buy rating on the stock with a $32.00 price target.

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