TSX up after index logs fresh record high close
Investing.com - Stifel raised its price target on Guidewire (NYSE:GWRE) to $300 from $270 while maintaining a Buy rating, citing the company’s record quarter driven by cloud migration momentum. The stock has already delivered an impressive 51% return over the past year, with current trading at $217. According to InvestingPro analysis, Guidewire currently appears overvalued based on its Fair Value estimates.
The firm highlighted Guidewire’s broad-based strength in migrations, expansions, and new business, which drove shares more than 12% higher after market close following the earnings report.
Stifel pointed to Guidewire’s ten-year deal with Liberty Mutual as a significant validation of the company’s progress in developing its Guidewire Cloud Platform (GWCP) and convincing large industry players to transition to cloud services.
The analyst noted higher anticipated ARR (Annual Recurring Revenue) growth rates for fiscal year 2026, along with solid visibility through ramping contract structures and significant remaining runway for migrations.
Stifel’s investment thesis also emphasized improving margins through broad-based efficiencies and economies of scale in the company’s cloud platform operations.
In other recent news, Guidewire Software reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.84, compared to the forecast of $0.63. The company also exceeded revenue predictions, reporting $356.57 million against the anticipated $337.85 million. Guidewire closed its fiscal year 2025 with annual recurring revenue exceeding $1 billion, showing a 19% increase year-over-year on a constant currency basis. In light of these strong results, RBC Capital raised its price target for Guidewire to $300 from $290, while maintaining an Outperform rating. The firm highlighted Guidewire’s robust fourth-quarter performance and continued success in cloud execution as key factors in its decision. These developments indicate a positive trajectory for Guidewire, as noted by RBC Capital.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.