Clearwater Analytics stock price target lowered to $27 by Morgan Stanley

Published 08/08/2025, 12:44
Clearwater Analytics stock price target lowered to $27 by Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has reduced its price target on Clearwater Analytics Holdings (NYSE:CWAN) to $27.00 from $36.00 while maintaining an Overweight rating on the stock. The company’s shares, currently trading near their 52-week low of $17.98, have declined over 34% in the past six months. According to InvestingPro data, the stock’s RSI suggests oversold conditions, potentially presenting an opportunity for value investors.

The adjustment comes after what Morgan Stanley described as a less explosive quarterly performance than anticipated in terms of net new annual recurring revenue (ARR).

Despite the price target reduction, the financial services firm noted that Clearwater’s organic ARR growth in the low-20s percentage range remained "solid" and that the company still has a "rich" near-term catalyst path.

Morgan Stanley indicated that any re-rating of the stock would depend on net new ARR performance, unless expectations are reset at Clearwater’s upcoming Investor Day scheduled for September 3.

The firm’s analysis suggests continued confidence in Clearwater’s overall business trajectory, as evidenced by the maintained Overweight rating despite the lower price target.

In other recent news, Clearwater Analytics Holdings Inc. reported its second-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share of $0.12, exceeding the forecast of $0.11, and generated revenue of $181.9 million, outperforming the expected $174.1 million. Clearwater Analytics also completed its acquisitions of Enfusion and Beacon, achieving $20 million in synergies a full year ahead of its target. The Enfusion business reported record-breaking bookings for the quarter. In light of these developments, Loop Capital lowered its price target for Clearwater Analytics to $31.00 from $35.00 but maintained a Buy rating on the stock. These recent developments reflect ongoing investor interest and strategic growth initiatives within the company.

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