Clearwater Analytics Holdings: Strong Performance and Strategic Positioning Justify Buy Rating

Analyst Michael Infante from Morgan Stanley maintained a Buy rating on Clearwater Analytics Holdings (CWAN – Research Report) and keeping the price target at $36.00.

Michael Infante has given his Buy rating due to a combination of factors that highlight Clearwater Analytics Holdings’ strong performance and strategic positioning. The company’s CEO, Sandeep Sahai, emphasized Clearwater’s historical success and provided positive insights on revenue growth and margins, which are crucial indicators of financial health. Additionally, Clearwater has demonstrated a consistent ability to meet ambitious targets, such as achieving a 115% net revenue retention rate and successfully transitioning its pricing model to secure a significant portion of annual recurring revenue.
Moreover, Clearwater’s track record of outperformance and strategic execution has been proven over time, even when faced with investor skepticism. The company’s ability to maintain robust gross and adjusted EBITDA margins further supports its financial stability and growth potential. These elements collectively underpin Michael Infante’s confidence in Clearwater Analytics Holdings, justifying the Buy rating with a price target of $36.

In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $36.00 price target.

Based on the recent corporate insider activity of 105 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.