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Clearwater Analytics upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded Clearwater Analytics (CWAN) to Buy from Neutral with an unchanged $27 price target The stock is down 30% over the last 6 months amid investor concerns regarding the quality of acquired assets and Clearwater’s progress on integration of multiple inorganic pieces of business at the same time, the analyst tells investors in a research note. The firm adds however that subtracting Enfusion from Clearwater’s enterprise value, the stock now implies that the core business is trading at about 31-times free cash flow FCF, despite consistently growing at over 20% and still having a multi-year runway of share gains ahead.

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