Stifel reiterates Buy rating on Guidewire stock, maintains $300 target

Investing.com - Stifel has reiterated its Buy rating on Guidewire (NYSE:GWRE) with a price target of $300.00, following the company’s strong fiscal year start. The target represents approximately 39% upside from the current price of $215.76, though InvestingPro analysis suggests the stock is trading above its Fair Value.

The insurance software provider demonstrated continued cloud momentum and delivered better-than-expected results on both revenue and earnings, according to Stifel. The company’s SaaS revenue growth exceeded expectations by 230 basis points. This performance aligns with InvestingPro data showing impressive 22.64% revenue growth over the last twelve months, with the company maintaining a healthy 62.54% gross profit margin.

Guidewire highlighted its expanded solution offerings at its recent Connections conference, including new opportunities through PolicyCenter and UnderwritingCenter, along with additional data solutions.

Stifel noted that while these cross-sell opportunities will take time to contribute meaningfully due to the insurance industry’s slow-moving nature, the firm remains confident in Guidewire’s competitive positioning and growth potential.

The research firm also pointed out that Guidewire’s raised gross margin guidance reflects its cloud momentum and should offset incremental investments the company is making.

In other recent news, Guidewire Software Inc. reported its first-quarter earnings for fiscal year 2026, surpassing Wall Street expectations. The company achieved earnings per share of $0.66, beating the forecasted $0.61, and reported revenue of $333 million, exceeding the anticipated $316.62 million. Guidewire’s strong performance was highlighted by Goldman Sachs, which maintained its Buy rating with a price target of $305.00, noting the company’s stronger-than-expected first-quarter results. The software provider reported annual recurring revenue of $1,063 million, surpassing guidance by $11 million, marking the largest first-quarter net new ARR since at least fiscal 2019.

Raymond James also reiterated its Outperform rating for Guidewire, setting a price target of $275.00 following the company’s impressive first-quarter results, which included record bookings and a raised full-year outlook. Citizens maintained its Market Outperform rating with a $281.00 price target, emphasizing Guidewire’s successful quarter and progress in cloud migration. The company closed eight cloud deals during the quarter, a notable achievement given the typically slower season. These developments reflect the company’s ongoing momentum and strategic advancements in its business operations.

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