BofA Securities has raised its price target for Guidewire (NYSE: GWRE) to $135 from $113, but maintains an Underperform rating. This change follows Guidewire’s analyst day in New York, where management showcased a positive outlook for the company’s future.
At the event, Guidewire outlined its achievements over the past two years and its strategy for strong financial performance in the software market. They are moving from a transformation phase and are confident in meeting financial goals.
Key topics discussed included Guidewire’s targets for fiscal year 2028, growth drivers, margin expansion strategies, and the roadmap for their Cloud Platform.
Despite the increase in price target, BofA remains cautious about the stock’s near-term performance.
In related news, multiple analysts have raised their forecasts for Guidewire. Oppenheimer increased its target to $200 and maintains an Outperform rating, influenced by goals for $1.5 billion in annual recurring revenue (ARR) and a 28-29% EBIT margin by fiscal 2028.
RBC Capital and Baird also raised their targets to $215 and $204, respectively, citing strong profitability goals and cloud offerings. BTIG holds a Buy rating with a $195 target, predicting that Guidewire will continue to have business momentum.
For fiscal 2025, Guidewire forecasts $1 billion in ARR, with total revenue expected to reach between $1.135 billion and $1.149 billion, largely due to its successful cloud transition.
Additionally, Guidewire appointed Mark Anquillare to its board, while facing a hacking incident related to insider trading information.
InvestingPro Insights
Guidewire’s analyst day has positively influenced market performance, with a 98.8% return over the past year and 62.09% over the last six months. Thirteen analysts have raised their earnings forecasts, indicating confidence in Guidewire’s prospects.
Analysts expect Guidewire to be profitable this year, a turnaround from the previous year. However, the stock is nearing its 52-week high, which suggests it may be overbought, aligned with BofA’s cautious outlook.
For deeper insights, InvestingPro offers additional analysis on Guidewire’s financial health.
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