DA Davidson Slashes PT on Clearwater Analytics Holdings (CWAN) to $34 From $36, Keeps a Buy Rating

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best stocks under $20 to buy for the long term. On August 12, DA Davidson lowered the firm’s price target on Clearwater Analytics Holdings, Inc. (NYSE:CWAN) to $34 from $36, keeping a Buy rating on the shares.

The firm told investors that Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported “strong” Q2 results, reporting 70% growth in total revenue and 74% growth in adjusted EBITDA.

The firm expects compound annual growth in adjusted EBITDA of 39%-40% between 2024 and 2027, adding that the stock’s current enterprise value to expected EBITDA multiple is considerably attractive for a high-quality, vertically-focused software company.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides web-based investment portfolio accounting, reporting, and reconciliation services. The company’s operations are divided into the United States and the Rest of the World geographical segments.

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.