William Blair analyst Dylan Becker has maintained their bullish stance on CWAN stock, giving a Buy rating yesterday.
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Dylan Becker has given his Buy rating due to a combination of factors that highlight Clearwater Analytics Holdings’ strong financial performance and strategic growth prospects. The company reported impressive results at the end of 2024, with a net dollar retention rate of 116% and annual recurring revenue growth of 25%, both of which significantly boosted stock prices. Moreover, Clearwater’s total revenue growth surpassed expectations, and its EBITDA margins showcase effective execution within the Rule-of-60 framework.
Additionally, the company’s forward-looking guidance for 2025 projects continued robust growth and profitability. The anticipated acquisition of Enfusion is expected to enhance Clearwater’s operational capabilities, providing further opportunities for cross-selling and expanding its market reach. Overall, Clearwater is well-positioned to leverage the digitization trends within the investment accounting sector, supported by its expanding product offerings and strong network effects, making it a compelling investment opportunity.
According to TipRanks, Becker is a 5-star analyst with an average return of 15.0% and a 71.70% success rate. Becker covers the Technology sector, focusing on stocks such as Manhattan Associates, ServiceTitan, Inc. Class A, and Powerfleet.
In another report released yesterday, Piper Sandler also upgraded the stock to a Buy with a $36.00 price target.