Guidewire (GWRE – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Turrin from Wells Fargo maintained a Buy rating on the stock and has a $220.00 price target.
Michael Turrin has given his Buy rating due to a combination of factors including Guidewire’s strong quarterly performance and ongoing transition to cloud services. The company exceeded expectations with its annual recurring revenue (ARR) surpassing guidance, driven by a healthy mix of new sales and deal expansions. Additionally, Guidewire’s revenue growth was robust, particularly in subscription services, which saw a significant year-over-year increase.
Furthermore, the company’s guidance for fiscal year 2025 has been raised, indicating confidence in continued growth, especially in the latter part of the year. The solid operational margins and favorable cost management also contribute to the positive outlook. The valuation of Guidewire’s shares, based on future earnings and cash flow estimates, supports the Buy rating, reflecting the potential for significant margin expansion as the cloud transition progresses.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GWRE in relation to earlier this year.