Morgan Stanley Maintains Buy Rating on Clearwater Analytics Holdings (CWAN) Stock

Core Viewpoint - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is identified as an oversold software stock with significant growth potential, supported by a "Buy" rating from Morgan Stanley analyst Michael Infante, who set a price target of $27.00 [1][2]. Group 1: Company Performance and Innovations - Clearwater Analytics has been actively innovating and releasing new products, showcasing a strong pipeline for future adoption [2]. - The company has made three acquisitions earlier this year and is currently integrating these assets, which is expected to enhance its market position [3]. - Recent developments include an expansion deal with a US bank for a compliance solution aimed at government clients and new modules for private credit operations [2]. Group 2: Market Position and Valuation - The integration capabilities of Clearwater Analytics' core platform are highlighted as a key differentiator in the industry, which is not yet fully reflected in the current stock valuation [1]. - Despite the potential, the stock has faced challenges, including being one of the largest detractors from performance according to Loomis Sayles' Q2 2025 investor letter [3]. Group 3: Market Sentiment and Comparisons - There is a sentiment that while Clearwater Analytics has investment potential, certain AI stocks may offer greater upside potential with less downside risk [3].