Guidewire price target raised to $160 from $135 at BofA

BofA raised the firm’s price target on Guidewire (GWRE) to $160 from $135 and keeps an Underperform rating on the shares. The insurance software vendor reported “strong” Q3 results, with beats on all major metrics and positive revisions to revenue, ARR, operating income, and CFO guidance, the analyst tells investors. However, while the firm can find “very little to nitpick” in the company’s Q3 results, it remains cautious on the risk/reward as the stock trades at an “expensive” multiple that the analyst calls “among the highest in software,” the analyst added. Though the firm continues to believe risk/reward is more attractive in other software stocks, it is “encouraged” by Guidewire’s continued execution against its strategic objectives.