Michael Turrin, an analyst from Wells Fargo, maintained the Buy rating on Clearwater Analytics Holdings (CWAN – Research Report). The associated price target remains the same with $32.00.
Michael Turrin has given his Buy rating due to a combination of factors including Clearwater Analytics Holdings’ strong financial performance and growth potential. The company reported impressive first-quarter results with a 24% increase in revenue and a 23% growth in annual recurring revenue. Despite a slight dip in net revenue retention, the gross retention rate remained stable at 98%, and the EBITDA margin exceeded expectations, indicating robust operational efficiency.
Additionally, Clearwater Analytics Holdings has provided optimistic guidance for the fiscal year 2025, projecting significant revenue growth due to recent acquisitions. The integration of Enfusion and Beacon is expected to enhance cross-selling opportunities and improve net revenue retention in the near term. The company’s shares are currently trading at a favorable valuation, and the target price of $32 reflects confidence in its competitive positioning and balanced financial profile.
CWAN’s price has also changed moderately for the past six months – from $26.890 to $22.740, which is a -15.43% drop .