DA Davidson reiterates Buy rating on Clearwater Analytics stock ahead of Q2 results

Published 23/07/2025, 15:16
DA Davidson reiterates Buy rating on Clearwater Analytics stock ahead of Q2 results

Investing.com - DA Davidson has reiterated its Buy rating and $36.00 price target on Clearwater Analytics Holdings (NYSE:CWAN), a $5.6 billion market cap company with impressive 23% revenue growth, ahead of its second-quarter earnings report scheduled for July 30.

The investment firm expects Clearwater Analytics to report its Q2 results and anticipates the company will meet or modestly exceed both DA Davidson’s forecasts and consensus estimates. According to InvestingPro data, the company maintains strong financial health with a current ratio of 5.09, though it trades at relatively high valuation multiples.

DA Davidson also expects management to either affirm or modestly adjust their 2025 guidance when reporting results, which includes the impact of three recent acquisitions made by the company.

The firm’s $36 price target for Clearwater Analytics stock remains unchanged following this assessment of the company’s near-term performance outlook.

Clearwater Analytics provides investment accounting, reporting, and analytics solutions for asset managers, insurance companies, and large corporations.

In other recent news, Clearwater Analytics reported a strong first-quarter performance with a 24% year-over-year increase in total revenue and a 40% growth in adjusted EBITDA, surpassing initial forecasts by DA Davidson. The company has revised its 2025 financial outlook due to the impact of three recent acquisitions, which are anticipated to enhance its technology offerings significantly. In a strategic move, McCormick (NYSE:MKC) & Company has adopted Clearwater Analytics’ commercial paper workflow solution to bolster its short-term capital raising operations. Additionally, Bloomberg and Clearwater Analytics announced a partnership to deliver a comprehensive investment solution for asset owners and managers.

On the analyst front, Oppenheimer lowered its price target for Clearwater Analytics to $36.00 from $40.00, citing integration risks but maintained an Outperform rating. Meanwhile, Goldman Sachs resumed coverage on Clearwater Analytics with a Neutral rating and set a price target of $26.00, emphasizing the competitive advantages of Clearwater’s core accounting platform. DA Davidson maintained a Buy rating on Clearwater stock with a $36.00 target, highlighting the company’s strategic acquisitions and robust financial performance. These developments reflect Clearwater Analytics’ ongoing efforts to expand its capabilities and strengthen its market position.

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