Stifel maintains Enfusion stock Hold rating, $11.25 target

Published 04/03/2025, 16:24
Stifel maintains Enfusion stock Hold rating, $11.25 target

On Tuesday, Stifel analysts maintained a Hold rating on Enfusion Inc (NYSE:ENFN) shares, with a steady price target of $11.25. The firm’s decision comes after Enfusion’s announcement of its fourth-quarter results for 2024, which were disclosed after the market closed on Monday. The company, currently valued at $1.47 billion, has shown strong momentum with a 41.77% price return over the past six months and is trading near its 52-week high of $11.80. Stifel’s analysis follows the company’s previous news from January 13, 2025, when Enfusion entered into an acquisition agreement with Clearwater Analytics, a firm that Stifel does not cover, at a rate of $11.25 per share.

The analyst at Stifel, J. Parker Lane, has chosen to reiterate the Hold rating and the price target for Enfusion, indicating a neutral stance on the stock’s investment potential at the present time. The price target of $11.25 aligns with the acquisition price offered by Clearwater Analytics, reflecting the agreed value per share in the buyout deal.

Enfusion’s fourth-quarter earnings report, which was released this week, provided investors with the latest financial performance data for the company. According to InvestingPro data, the company has demonstrated solid growth with a 15.51% year-over-year revenue increase and maintains a healthy financial position with a current ratio of 3.42. The implications of these results on the stock’s valuation were not elaborated upon by Stifel, as the acquisition agreement presumably sets a firm expectation for the stock’s value.

The acquisition by Clearwater Analytics marks a significant transition for Enfusion, with the agreed share price of $11.25 now serving as a benchmark for analysts and investors alike. Stifel’s confirmation of the Hold rating and the price target suggests that the firm sees little deviation from this valuation in the near term.

Investors holding Enfusion stock now have a clear perspective on its value, as affirmed by Stifel’s reiterated rating and target. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with 12 additional exclusive ProTips available to subscribers. The acquisition process continues to be a key factor in the stock’s current assessment and will likely remain so until the transaction is completed.

In other recent news, Enfusion Inc. has announced it will be acquired by Clearwater Analytics, prompting significant reactions from analysts. Stifel has downgraded Enfusion’s stock from Buy to Hold, aligning the price target with the acquisition price of $11.25 per share, down from the previous $13.00. This acquisition price represents a 13% premium over the stock’s recent closing price and values the company at approximately 6.4 times its projected FY25 enterprise value/revenue. Meanwhile, Morgan Stanley (NYSE:MS) has also adjusted its rating, downgrading Enfusion from Overweight to Equal-weight, while slightly increasing the price target from $11.00 to $11.25 to match the acquisition price.

The acquisition is seen as a strategic move to expedite value realization for Enfusion’s shareholders, addressing concerns about its limited public float and reliance on the startup hedge fund sector. Both Stifel and Morgan Stanley view the acquisition price as fair, with Stifel noting the low likelihood of a competing bid. The deal is expected to stabilize Enfusion’s share price around the agreed acquisition price. Investors are closely monitoring these developments, as the acquisition marks a significant transition for Enfusion.

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

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