Why D.A. Davidson Stayed Neutral on Clearwater Analytics (CWAN) Amid Its Pending Take-Private Deal

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best rising AI stocks to buy now. As of late February 2026, analysts covering Clearwater Analytics had a consensus Hold rating, with an average price target of about $26.17, a high target of $36.00, and a low target of $24.55. That implied roughly 11.7% upside from the stock’s then-current trading level.

On February 24, 2026, D.A. Davidson reiterated its Neutral rating on Clearwater Analytics and kept its price target at $24.55. The firm said fourth-quarter results came in modestly above both its own forecast and street expectations. D.A. Davidson also said it made only limited adjustments to its 2026 and 2027 forecasts, noted that management did not hold an earnings call or issue 2026 guidance because of the pending take-private transaction, and said it expected the merger proxy to be filed soon. The firm added that it expected the deal to close in April or May.

For context, in late December 2025, it was announced that Clearwater Analytics would be acquired by a private equity group led by Permira and Warburg Pincus for approximately $8.4 billion.

Why D.A. Davidson Stayed Neutral on Clearwater Analytics (CWAN) Amid Its Pending Take-Private Deal

Source: PEXELS

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-native investment management platform for institutional investors across public and private markets, using a single-instance, multi-tenant architecture to deliver real-time data and AI-driven insights across the investment lifecycle.

While we acknowledge the risk and potential of CWAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CWAN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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