Clearwater Analytics stock price target lowered to $34 at DA Davidson

Published 12/08/2025, 11:34
Clearwater Analytics stock price target lowered to $34 at DA Davidson

Investing.com - DA Davidson lowered its price target on Clearwater Analytics Holdings (NYSE:CWAN) to $34.00 from $36.00 on Tuesday, while maintaining a Buy rating on the stock. The stock, currently trading at $18.45, has experienced significant pressure, declining over 32% in the past six months. According to InvestingPro analysis, the company maintains a "GOOD" Financial Health score, with liquid assets exceeding short-term obligations.

The firm’s decision follows Clearwater’s second-quarter results, which showed 70% year-over-year growth in total revenue and 74% year-over-year growth in adjusted EBITDA, exceeding DA Davidson’s forecasts by 5% and 10% respectively. The company’s strong performance is reflected in its impressive 70.56% gross profit margin and sustained revenue growth trajectory. InvestingPro subscribers have access to 15+ additional exclusive insights about CWAN’s financial performance and outlook.

Clearwater management has modestly increased their financial guidance ranges for 2025, raising the midpoints of their total revenue and adjusted EBITDA guidance by approximately 1% each.

DA Davidson forecasts compound annual growth in adjusted EBITDA of 39%-40% from 2024 to 2027, including the impact of three pending acquisitions.

Despite the price target reduction, the firm maintained its Buy rating on Clearwater Analytics stock.

In other recent news, Clearwater Analytics Holdings 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. Additionally, Clearwater Analytics completed its acquisitions of Enfusion and Beacon, achieving $20 million in synergies a year ahead of schedule. Enfusion’s business reported record-breaking bookings for the quarter, contributing positively to Clearwater’s performance.

Meanwhile, Goldman Sachs upgraded Clearwater Analytics to a Buy rating from Neutral, maintaining a price target of $27, citing potential upside. Morgan Stanley (NYSE:MS), while maintaining an Overweight rating, lowered its price target to $27 from $36, noting a less explosive quarterly performance in net new annual recurring revenue. Loop Capital also adjusted its price target to $31 from $35, keeping a Buy rating. These developments reflect analysts’ varied perspectives on Clearwater’s recent performance and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.