
CWAN Stock Forecast & Price Target
CWAN Analyst Ratings
Bulls say
Clearwater Analytics has expanded its focus from traditional back-office functions to include front-office and middle-office capabilities through strategic acquisitions, positioning itself as a comprehensive technology platform for the investment cycle. The company has a strong profitability profile, reporting over 30% adjusted EBITDA margins, with management indicating a potential trajectory towards 40% adjusted EBITDA margins and 80% gross margin in the long term. Furthermore, the possibility of increased adoption of its Prism platform could lead to upside in revenue estimates and new client acquisitions, enhancing Clearwater’s financial outlook.
Bears say
Clearwater Analytics faces significant risks related to the integration of recent acquisitions that may distract management from focusing on existing business objectives. The company's pro forma net leverage of 3.5x raises concerns about its financial stability, especially amidst a backdrop of declining stock prices and potential macroeconomic shocks. Furthermore, longstanding competition from larger incumbents and the company's structural vulnerabilities, such as a multi-class share system and exposure to international markets, heighten the uncertainty surrounding Clearwater's future performance.
This aggregate rating is based on analysts' research of Clearwater Analytics Holdings and is not a guaranteed prediction by Public.com or investment advice.
CWAN Analyst Forecast & Price Prediction
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