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Investing.com - DA Davidson raised its price target on Guidewire (NYSE:GWRE) to $250.00 from $246.00 on Monday, while maintaining a Neutral rating on the insurance software provider. The stock, currently trading at $261.08, has shown remarkable momentum with a 20.13% gain in the past week alone, reaching near its 52-week high of $272.60.
The revision follows Guidewire’s fiscal fourth-quarter results, which exceeded DA Davidson’s expectations across revenue, annual recurring revenue (ARR), and non-GAAP operating income metrics. InvestingPro data shows the company maintains excellent financial health with strong revenue growth of 22.64% over the last twelve months.
Guidewire closed 19 cloud deals in the fourth quarter, compared to 16 in the same period last year, demonstrating continued momentum in its cloud transition.
Management introduced fiscal year 2026 guidance with midpoints for revenue, ARR, and operating income coming in above both DA Davidson’s forecasts and the consensus estimates, prompting the firm to raise its fiscal 2026 and 2027 forecasts.
At current levels, DA Davidson notes Guidewire shares are trading at an enterprise value of approximately 12.0-12.5 times its calendarized 2027 revenue forecast of $1,728 million and 47-48 times its calendarized 2027 adjusted EBITDA forecast of $445 million. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, with current P/E ratio at 267.89x.
In other recent news, Guidewire Software reported fourth-quarter 2025 earnings that exceeded expectations, with an earnings per share (EPS) of $0.84 against a forecast of $0.63. The company also reported revenue of $356.57 million, surpassing the anticipated $337.85 million. Guidewire’s Annual Recurring Revenue (ARR) reached $1,032 million, beating consensus estimates of $1,018 million. The positive performance was bolstered by 19 cloud deals, including a significant 10-year agreement with Liberty Mutual. In light of these strong results, several analyst firms have adjusted their price targets for Guidewire. Oppenheimer and Stifel both raised their targets to $300, while Raymond James increased its target to $275. RBC Capital also raised its target to $300, citing continued cloud execution and a strong fourth-quarter performance. These developments reflect the company’s robust growth in cloud migrations and an improved outlook across all metrics.
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