William Blair analyst Dylan Becker has maintained their bullish stance on GWRE stock, giving a Buy rating today.
Dylan Becker has given his Buy rating due to a combination of factors including Guidewire’s impressive quarterly performance, where both ARR and total revenue surpassed expectations with growth rates of 15% and 20%, respectively. The company achieved a record number of 12 cloud deals in the quarter, showcasing strong demand from tier-1 and tier-2 carriers as well as international markets. This reflects the increasing prioritization of digitizing core systems, driven by the need for enhanced risk management.
Additionally, Guidewire’s subscription and support gross margins improved to 69%, and the operating margin rose to 19%, indicating a positive shift in the business model as the company transitions to a cloud-based approach. The management’s optimistic outlook for fiscal 2025, with increased projections for revenue, margin, and ARR, further supports the company’s strong operational execution and favorable market conditions. These factors collectively underscore the company’s potential to meet and exceed its long-term goals, justifying the Buy rating.
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.