12:33 PM EDT, 10/07/2024 (MT Newswires) -- Clearwater Analytics ( CWAN ) is likely to benefit from rising tailwinds from new product cycles and new regulations in Q3, Oppenheimer said in a note emailed Monday.

"For 3Q, the company will likely show upside from secular demand, a faster organic and inorganic innovation cadence, NRR expansion, and margin benefits from AI," Oppenheimer analysts Brian Schwartz and Camden Levy said.

"However, the earnings setup appears less favorable from tougher comparisons, and multiples currently project a meaningfully successful outcome over the FTM," they said.

The analysts said the firm remains on track for upward net revenue retention momentum from multiple product-cycles gaining traction and with a new Insights product cycle launching to increase wallet share over the next two years. They also pointed to new regulation for monthly stock holdings reporting for asset managers that could benefit Clearwater.

"We remain optimistic on CWAN's potential to be a good fundamental growth compounder and long-term share-gainer," they said. Oppenheimer has an outperform rating on the stock and raised its price target to $31 from $25.

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