Morgan Stanley analyst Michael Infante maintained a Buy rating on Clearwater Analytics Holdings yesterday and set a price target of $36.00.
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Michael Infante has given his Buy rating due to a combination of factors that highlight the potential for Clearwater Analytics Holdings to outperform. He notes that the company’s stock is currently undervalued, particularly given its strong position as a high-quality vertical software asset. Infante points out that technical factors and unclear messaging have previously impacted the stock, but recent discussions with the company’s leadership have reinforced confidence in its growth prospects.
Infante emphasizes that Clearwater Analytics is expected to deliver consistent earnings beats and upward revisions throughout the year. The company’s ability to sustain over 20% pro-forma growth and the potential of its integrated platform are seen as key strengths. Additionally, upcoming events like the September Investor Day and User Conference are anticipated to serve as catalysts for further stock appreciation. Infante believes that if the company can demonstrate durable revenue growth, the stock is currently too cheap and presents a compelling investment opportunity.
CWAN’s price has also changed moderately for the past six months – from $26.960 to $22.050, which is a -18.21% drop .