Tyler Radke, an analyst from Citi, maintained the Hold rating on Guidewire. The associated price target was lowered to $242.00.
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Tyler Radke’s rating is based on a combination of factors that reflect both positive and cautious outlooks for Guidewire. The fundamentals of the company appear strong, with positive momentum in cloud adoption among tier 1 insurers, as observed during the Connections event and through intra-quarter checks. Additionally, the Analyst Day highlighted the potential for growth with the FY25 InsuranceSuite cohort, indicating a larger ramp-up and possible upside to targets.
However, Radke maintains a Hold rating due to the expectation that the upcoming first fiscal quarter may not serve as a significant catalyst for the stock. The typical seasonality is expected to moderate any substantial estimate revisions, and the valuation multiples are considered to be at a steep premium compared to vertical software peers. While the overall business direction is positive, these factors contribute to a neutral stance, with the target price adjusted to $242, reflecting a 12.3x FY27 EV/S multiple.
According to TipRanks, Radke is a 4-star analyst with an average return of 5.8% and a 48.92% success rate. Radke covers the Technology sector, focusing on stocks such as Oracle, Salesforce, and Autodesk.
In another report released on November 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $227.00 price target.