Oppenheimer Cuts Clearwater Analytics (CWAN) PT to $36, Keeps Outperform Rating

Clearwater Analytics Holdings Inc. (NYSE:CWAN) is one of the best technology stocks according to Wall Street analysts. Earlier on June 11, Oppenheimer analyst Brian Schwartz adjusted the price target for Clearwater Analytics to $36 from $40, while maintaining an Outperform rating on the shares. This revision was made due to group multiples compression in the market.

In Q1 2025, Clearwater Analytics’ revenue reached $126.9 million, which was a 23.5% year-over-year increase. ARR grew by 22.7% to $493.9 million. The company maintains a high client retention rate with a gross revenue retention rate of 98% and a net revenue retention rate of 114%, although the latter saw a slight decrease from 116% in the previous quarter. Despite the lowered price target, Oppenheimer is confident in the company’s profitable growth strategy, paired with its recent acquisitions.

A wide shot of a large financial data center.

The acquisition of Enfusion, valued at ~$1.5 billion, was finalized on April 21 and added a market-leading front-office platform for hedge funds and asset managers. The acquisition of Beacon, completed on April 30 for ~$560 million, enhanced cross-asset trading and risk management capabilities. Additionally, Blackstone’s Bistro platform was acquired for ~$125 million on March 31 and brought private credit assets data visualization.

Clearwater Analytics Holdings Inc. (NYSE:CWAN) develops and provides a SaaS solution for automated investment data aggregation, reconciliation, accounting, and reporting services for insurers, investment managers, corporations, institutional investors, and government entities.

While we acknowledge the potential of CWAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.