Update shared on 07 Nov 2025
Fair value Decreased 5.06%The analyst price target for Clearwater Analytics Holdings has been revised downward from $30.55 to $29.00. Analysts cite slower expected revenue growth but also acknowledge a resilient profit margin and optimism about the company's multi-year growth prospects, despite recent investor concerns.
Analyst Commentary
Recent Street research reveals a mix of optimism and caution among analysts as they assess Clearwater Analytics Holdings' current valuation, growth prospects, and execution.
Bullish Takeaways- Bullish analysts note that the company’s core business continues to grow at a rate exceeding 20% annually, which demonstrates resilience even during sector uncertainty.
- They highlight a multi-year runway for share gains and suggest Clearwater is well-positioned to capture additional market share over time.
- Despite market volatility, Clearwater maintains a healthy free cash flow profile. The company trades at a premium valuation that reflects consistent operational delivery.
- Confidence remains steady in the company’s ability to integrate new acquisitions and realize synergies from recent inorganic expansion.
- Bearish analysts express concerns about the quality of recently acquired assets and warn that integration risks could impact future performance.
- Near-term stock performance has been pressured, with shares declining 30% over the past six months amid heightened investor caution.
- Some point to the business’s elevated free cash flow multiple and question whether current valuation fully captures execution challenges and the pace of revenue growth moderation.
What's in the News
- Clearwater Analytics completed a share repurchase of 866,603 shares for $16.36 million, finalizing its buyback announced in September 2025 (Buyback Tranche Update).
- The company launched CWAN GenAI, an integrated generative AI platform that automates investment operations. Clients have reported significant improvements, including a 90% reduction in manual reconciliation effort and an 80% reduction in report generation time (Product-Related Announcements).
- Clearwater Analytics provided consolidated earnings guidance for Q4 and full year 2025. The company expects revenues of $216 to $217 million for the quarter and $730 to $731 million for the year (Corporate Guidance, New/Confirmed).
- Integration with J.P. Morgan Asset Management connects Enfusion by CWAN with the Morgan Money trading platform. This integration enables hedge funds to automate cash management and improve liquidity visibility (Client Announcements).
- T. Rowe Price Associates implemented the CWAN platform for stable value operations, enhancing reporting capabilities and reducing operational risks for plan sponsors and participants (Client Announcements).
Valuation Changes
- Consensus Analyst Price Target has decreased moderately, moving from $30.55 to $29.00.
- Discount Rate has risen slightly, from 8.86% to 8.95%.
- Revenue Growth forecast has fallen, declining from 30.36% to 25.45%.
- Net Profit Margin has increased, moving from 8.73% to 9.96%.
- Future P/E ratio has decreased significantly, from 136.0x to 105.1x.
Disclaimer
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