The Analyst Verdict: Guidewire Software In The Eyes Of 11 Experts

In the last three months, 11 analysts have published ratings on Guidewire Software GWRE, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 7 0 1 0
Last 30D 1 0 0 0 0
1M Ago 0 1 0 0 0
2M Ago 2 6 0 1 0
3M Ago 0 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Guidewire Software, presenting an average target of $142.91, a high estimate of $170.00, and a low estimate of $95.00. Witnessing a positive shift, the current average has risen by 10.4% from the previous average price target of $129.45.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The standing of Guidewire Software among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Kevin Kumar Goldman Sachs Raises Buy $170.00 $146.00
Rishi Jaluria RBC Capital Raises Outperform $170.00 $130.00
Michael Turrin Wells Fargo Raises Overweight $150.00 $140.00
Joe Vruwink Baird Raises Outperform $152.00 $140.00
Rishi Jaluria RBC Capital Maintains Outperform $130.00 $130.00
Alexei Gogolev JP Morgan Raises Overweight $145.00 $133.00
Ken Wong Oppenheimer Raises Outperform $140.00 $130.00
Parker Lane Stifel Raises Buy $140.00 $130.00
Michael Turrin Wells Fargo Raises Overweight $140.00 $130.00
Brad Sills B of A Securities Raises Underperform $95.00 $80.00
Matthew Vanvliet BTIG Raises Buy $140.00 $135.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Guidewire Software. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Guidewire Software compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Guidewire Software's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Guidewire Software's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Guidewire Software analyst ratings.

Delving into Guidewire Software's Background

Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.

Key Indicators: Guidewire Software's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Guidewire Software displayed positive results in 3 months. As of 30 April, 2024, the company achieved a solid revenue growth rate of approximately 16.0%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Guidewire Software's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -2.28%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -0.43%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Guidewire Software's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.27%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.34.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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