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Investing.com - Raymond James raised its price target on Guidewire (NYSE:GWRE) to $275.00 from $255.00 on Friday, while maintaining an Outperform rating following the company’s fourth-quarter results. The new target sits within the current analyst range of $155-$305, with InvestingPro data showing the stock has already delivered an impressive 50.76% return over the past year.
The firm cited Guidewire’s "fantastic" fourth-quarter performance, which included record and accelerating bookings with 22% year-over-year fully ramped ARR growth and improved outlook across all metrics. This momentum is reflected in the company’s robust 18.61% revenue growth and overall GOOD financial health score, according to InvestingPro analysis.
Net new fully ramped ARR dollars accelerated to 38% year-over-year growth, demonstrating strong momentum in Guidewire’s business.
Raymond James highlighted three key growth drivers for Guidewire: increasing carrier modernization needs, accelerating cloud migrations, and potential diversification through product development in areas like pricing and claims automation, including new generative AI solutions.
The firm also noted a significant win with Liberty Mutual, which reinforces Guidewire’s market position in the insurance software sector.
In other recent news, Guidewire Software reported its fourth-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.84, compared to the forecasted $0.63. The company’s revenue also surpassed predictions, reaching $356.57 million against the anticipated $337.85 million. This strong performance was highlighted by the closing of fiscal year 2025 with annual recurring revenue (ARR) surpassing $1 billion, marking a 19% year-over-year growth on a constant currency basis.
Analyst firms have responded positively to these developments. Stifel raised its price target for Guidewire to $300 from $270, maintaining a Buy rating, driven by the company’s momentum in cloud migration. Similarly, RBC Capital increased its price target to $300 from $290, while maintaining an Outperform rating, citing Guidewire’s robust fourth-quarter performance and continued cloud execution. These recent developments underscore the company’s successful transition and expansion in the cloud sector.
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