Shares of Clearwater Analytics are poised for a comeback, helped by free cash flow in the core business that is growing by more than 02% annually and a planned conference with investors set for early September, according to Goldman Sachs. The Wall Street investment bank upgraded Boise, Idaho-based Clearwater to buy from neutral but kept its price target at $27, implying more than 46% upside from Monday's close. Clearwater, a provider of investment portfolio accounting and other business tools, has tumbled 33% so far in 2025. Much of the decline was caused by concerns tied to the quality of Clearwater's acquired assets, including Enfusion, and its progress on integration in its businesses, Goldman analysts led by Gabriela Borges wrote. "If we subtract Enfusion from Clearwater's enterprise value, the stock now implies that the core business is trading at ~31x [free cash flow], despite consistently growing at over 20% and still having a multi-year runway of share gains ahead," the analyst wrote in a note this week. "We believe that execution risk tied to the acquisitions is now more than priced in, and we see a positive catalyst path for the stock from here, including at the September 3 Analyst Day." CWAN 6M mountain CWAN, 6-month Borges expects momentum in Clearwater's core business to drive 20% growth over the next three to five years. "We believe that Clearwater's cloud-native solution will continue to win against a mix of legacy solutions and more specialized point products," the analyst wrote. Every Wall Street analyst who covers Clearwater rates it a buy, according to FactSet data, and the consensus price target of a little more than $31 implies 70% upside in the stock. Shares jumped nearly 6% premarket Tuesday in reaction to the Goldman upgrade. Goldman led Clearwater's original initial public offering in September 2021 at $18 a share.
