Update shared on04 Sep 2025
Clearwater Analytics’ unchanged price target reflects a balanced analyst view as integration risks and asset concerns offset attractive FCF-based valuation and strong platform expansion potential, keeping fair value steady at $30.55.
Analyst Commentary
- Stock’s recent decline attributed to concerns over the quality of acquired assets and execution risks integrating multiple acquisitions simultaneously.
- Discounted valuation as the core business is trading at around 31-times FCF, which appears attractive given its 20%+ growth rate and long runway for market share gains.
- Ongoing integration of three major acquisitions is viewed as a transformative opportunity to significantly expand Clearwater’s total addressable market.
- The creation of an end-to-end platform from these integrations is expected to unlock substantial upsell and cross-sell potential among existing customers, thereby increasing wallet share.
- Bullish analysts anticipate that successful integration and platform development will drive higher client win rates, supporting long-term revenue growth.
What's in the News
- Clearwater Analytics announced a $100 million share repurchase program with no expiration date, authorized by the Board of Directors.
- Provided Q3 2025 revenue guidance of $203-$204 million and full-year 2025 guidance of $726-$732 million.
- Expanded solutions for Prosperity Life Group to streamline and optimize management of complex residential tranche loans, enhancing transparency and operational efficiency.
- McCormick & Company adopted Clearwater’s commercial paper workflow solution to improve short-term capital raising and oversight.
- Announced a strategic collaboration with Bloomberg to deliver a comprehensive, integrated front-to-back investment solution for asset owners and asset managers.
Valuation Changes
Summary of Valuation Changes for Clearwater Analytics Holdings
- The Consensus Analyst Price Target remained effectively unchanged, at $30.55.
- The Future P/E for Clearwater Analytics Holdings has fallen slightly from 135.96x to 130.09x.
- The Discount Rate for Clearwater Analytics Holdings remained effectively unchanged, moving only marginally from 8.84% to 8.86%.
Disclaimer
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