Citi Initiates Coverage on Clearwater Analytics and Clearway Energy with Buy Ratings

Clearwater Analytics gets initiated with Buy at Citi

Citi began coverage of Clearwater Analytics (NYSE:CWAN) with a Buy rating and a $28 price target. The analysts said Clearwater is an attractive vertical software play on modern investment accounting and related front-to-back tech solutions. The company is at an inflection point for several reasons, which include elevated new logo opportunity; multi-product transition supports higher Net Revenue Retention, or NRR, with a steadier organic and inorganic product sequence, the analysts noted. In addition, Clearwater is at an inflection point due to -- interest rate stability, with cuts as a potential AUM catalyst; Gen AI cost efficiency is being realized, and revenue opportunity is emerging; and Base plus pricing and public cloud transition flow through, according to the analysts. These opportunities indicate an ability to maintain or exceed current growth rates, and platform scalability steers continued profitability ramp, the analysts noted. The analysts added that execution and expectations management at current valuation is essential. However, Clearwater's platform and opportunity breadth suggest that risk/reward skews to the upside for this high-quality play. Clearwater Analytics (CWAN) has a Buy rating at Seeking Alpha's Quant Rating system, which consistently beats the market. Meanwhile, the Seeking Alpha authors' average rating is also Buy, and so is the average Wall Street analysts' rating, Buy.

Citi initiates Clearway Energy stock with a Buy, sees positive risk/reward balance By Investing.com

On Monday, Citi initiated coverage on Clearway Energy (NYSE:CWENa) Inc. (NYSE:CWEN) with a Buy rating and a price target of $28.00. Clearway (NYSE:CWEN) Energy, recognized for its investment in modern investment accounting and front-to-back technology solutions, is seen as an attractive vertical software company. The firm's analysis points to Clearway Energy being at a critical juncture due to several factors. These include an increased opportunity for new client acquisition and a multi-product transition that is expected to support a higher net revenue retention. Additionally, the stability of interest rates, with potential cuts acting as a catalyst for assets under management, plays a significant role in the company's favorable outlook. The analyst also noted the cost efficiency gains from General Artificial Intelligence and the emerging revenue opportunities associated with it. The pricing strategy and transition to public cloud services are anticipated to contribute to the company's financial performance. Citi's coverage suggests that Clearway Energy's ability to maintain or surpass its current growth rates is strong. The scalability of its platform is believed to be a driver for continued profitability. While the firm acknowledges the importance of execution and managing expectations at the current valuation, the breadth of the company's platform and market opportunities indicate a risk/reward balance that leans towards the upside, making it a high-quality investment option. As Clearway Energy Inc. (NYSE:CWEN) garners a positive outlook from Citi, with a Buy rating and a price target of $28.00, InvestingPro data provides additional insights into the company's financial standing. Currently, Clearway Energy has a market capitalization of approximately $5.69 billion and is trading at a P/E ratio of 34.77. Notably, the company's dividend yield stands at an attractive 5.76%, signaling a significant return to shareholders. InvestingPro Tips highlight that Clearway Energy pays a significant dividend to shareholders and has liquid assets that exceed short-term obligations. These factors may offer investors a sense of security regarding the company's financial health and its ability to maintain dividend payouts. Moreover, analysts predict that Clearway Energy will be profitable this year, which aligns with the company's positive performance over the last twelve months. For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CWEN. The company's strong return over the last month, with a 1 Month Price Total Return of 14.9%, and its trading near its 52-week high, price being 99.28% of the 52-week high, suggest that investor confidence in Clearway Energy is currently high. These metrics, coupled with Citi's optimistic assessment, paint a picture of a company that is executing well and rewarding its investors.