Guidewire's Cloud Transition Pays Off Early: Analyst Raises Price Target Amid Margin Gains
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst J. Parker Lane has reiterated a Buy rating on Guidewire Software, Inc. (NYSE:GWRE) and raised the price target to $95 from $85. This follows better-than-expected Q4 earnings from Guidewire, despite issuing soft revenue guidance. The company's transition to cloud is yielding margin gains earlier than expected, setting it up to hit the high end of its FY25 margin targets. The analyst sees significant momentum in cloud migrations within the customer base, net new cloud deployments and expansions, and margin expansion on the back of past investments.
September 08, 2023 | 6:13 pm
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Guidewire Software's transition to cloud is yielding margin gains earlier than expected, which has led to a price target increase by Stifel analyst. The company's Q4 earnings were better than expected, despite soft revenue guidance.
The news of Guidewire's better-than-expected Q4 earnings and the early margin gains from its cloud transition is positive. This has led to an increase in the price target by Stifel analyst, which could potentially drive the stock price up in the short term.
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IMPORTANCE 80
RELEVANCE 100