Clearwater Analytics Gains As Investors Eye Growth Beyond Acquisition Jitters

Clearwater Analytics Holdings (NYSE: CWAN) shares rose on Tuesday, as investors looked for concerns about the recent acquisition, as they are betting on the continuous growth of two numbers and fresh products to push the long -term momentum.

Goldman Sachs Analyst Gabriella Borges has been promoted Clearwater Analytics Holdings (NYSE: CWAN) Classification of purchase from Neutral with price expectations 27 dollars on Monday.

Borges said that the 30 % decrease in shares during the past six months, compared to a 9 % increase in NASDAC, reflects investor concerns about the quality of acquired assets and Crewter’s ability to integrate multiple acquisitions simultaneously.

Also read: Enfusion “Clearwater Analytics” provides a convincing value, analysts of analysts

She said that these risks are now priced and seen a clear catalyst, including the day of analysts on September 3.

Borges expects that Clearwateer will maintain 20 % annual growth over the next three to five years, driven by automation platform, strong network effects and cross -sale opportunities.

She said that the net revenue (NRR) from Clerawar is already improving, with the possibility of climbing from the cross -sales as the company launches about five new products annually, which aims to grow in alternative investments through partnerships with Blackstone (Nyse: bx) and Pimco.

She added that the macro wind can enhance the results. Goldman displays three consecutive discounts from the 25-Basis average in September, which would raise the prices of fixed-income assets, about 80 % of Clearwateer AUM, and support revenue through the AUM pricing form.

Increased capital market activity and public subscription volume can add a point to two percentage points in the corporate sector, which represents about 16 % of revenues.

Borges acknowledged the investor’s concerns about the implementation of the acquisition, pointing to mixed results with previous deals and the challenge of integration EnfusionAbout 13 % of the operating rate sales.

However, you expect the growth of Enfusion from 13 % to 15 % by 2027, which is 20 % less than management goal, but it is believed that it can still achieve the total business growth of 19 %.

She referred to the last momentum of Enfusion, including a quarter of high -level reservations and 49 new customers wins in the second quarter.

In the long run, Borges is based on Clearwateer’s plan to build a comprehensive platform with one Master of Safe and Data Board for Institutional Investors, able to provide a full wallet offer in actual time across public and private markets.

It believes that the market reduces the joint platform’s ability to reach a base of 40 profile, even before achieving the vision completely.