DA Davidson raises Guidewire stock price target to $246 from $226

Published 04/06/2025, 21:54
DA Davidson raises Guidewire stock price target to $246 from $226

On Wednesday, DA Davidson analysts increased the price target for Guidewire stock (NYSE: NYSE:GWRE) to $246 from a previous target of $226, while keeping a Neutral rating. The adjustment follows Guidewire’s strong fiscal third-quarter results, which exceeded expectations in total revenue, annual recurring revenue (ARR), and non-GAAP operating income. The stock, currently trading at $253.98, has already surpassed this target and is approaching the Street’s high target of $290.

Guidewire closed 17 cloud deals during the quarter, a significant increase from the 8 deals closed in the same period last year. This included five new clients, contributing to the positive financial performance. The company’s strong execution is reflected in its impressive 101.93% return over the past year and 18.61% revenue growth. As a result of these outcomes, management has slightly increased their financial guidance for fiscal year 2025.

The analysts from DA Davidson noted that, despite the robust results, they have decided to maintain their Neutral rating on Guidewire stock. The decision reflects a balanced view of the company’s financial prospects and market positioning.

The updated price target and maintained rating show confidence in Guidewire’s ongoing business strategy and market execution. The company’s ability to secure more cloud deals and expand its client base has been a key factor in the revised financial forecasts.

In other recent news, Guidewire announced robust fiscal third-quarter results, surpassing market expectations in annual recurring revenue (ARR), total revenue, and profitability. The company reported 17 cloud deals and record third-quarter sales activity, contributing to a 16% year-over-year increase in ARR. Following these results, Guidewire raised its fiscal year 2025 guidance, with significant increases in operating income and cash flow projections. Analysts from RBC Capital, Raymond (NSE:RYMD) James, Goldman Sachs, and Stifel have responded positively, raising their price targets for Guidewire stock to $290, $255, $270, and $270, respectively, while maintaining favorable ratings. RBC Capital highlighted Guidewire’s cloud momentum, and Raymond James noted the company’s long-term growth prospects. Goldman Sachs emphasized the sustainability of Guidewire’s market share gains, and Stifel pointed to successful cloud migrations as key achievements. Meanwhile, DA Davidson maintained a Neutral rating, acknowledging the strong performance but choosing not to adjust their price target. Guidewire’s acquisition of Quantee for approximately $28 million also reflects its strategic focus on expanding capabilities. Investors and analysts continue to monitor Guidewire’s growth trajectory, particularly its cloud operations and subscription revenue.

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