
CWAN Stock Forecast & Price Target
CWAN Analyst Ratings
Bulls say
Clearwater Analytics Holdings has demonstrated a promising outlook due to its strong profitability, evidenced by adjusted EBITDA margins exceeding 30% and management's aspirations for long-term operating margins above 30%. The company has outlined a solid growth trajectory, anticipating over 20% annual recurring revenue (ARR) growth in the coming years, supported by expansion in existing and international markets and positive traction with its Prism platform. Additionally, the management's proactive adjustments to revenue guidance reflect confidence in their financial performance, highlighting a potential path to achieving 80% gross margins and 40% adjusted EBITDA margins.
Bears say
Clearwater Analytics Holdings' stock has experienced a significant decline, dropping approximately 46% from its March highs to November 10, largely due to rising net debt/EBITDA ratios exceeding 4x following recent acquisitions. The company's pro forma financials indicate high leverage, with a calculated net leverage of 3.5x based on management's adjusted EBITDA guidance, raising concerns about financial stability amid integration risks and potential distractions from management's core objectives. Additionally, the overall financial environment suggests lower capital market activity and decreased asset manager AUM, which could adversely impact Clearwater's revenue generation and operational efficiency.
This aggregate rating is based on analysts' research of Clearwater Analytics Holdings and is not a guaranteed prediction by Public.com or investment advice.
CWAN Analyst Forecast & Price Prediction
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