Guidewire Software Shares Pop After Analysts Bump Price Target Following Q4 Earnings Beat

Guidewire Software Inc GWRE reported Q4 revenue of $229.4 million, down 6% year-on-year, beating the analyst consensus of $222.4 million. The adjusted EPS of $0.37 beat the consensus of $0.25.
The software provider sees Q1 revenue between $162 million - $166 million below the consensus of $174.6 million.
Analysts raised their price targets in appreciation of their cloud deals.
Citi analyst Tyler Radke raised the PT to $138 from $115, implying a 16.5% upside, and reiterated a Neutral. He admitted the cloud deal momentum leading to the beat and more robust initial FY22 guidance.
However, Radke has some longer-term questions around the economics of Guidewire's cloud transition.
BTIG analyst Matt VanVliet raised the PT to $138 from $130 and maintained a Buy.
VanVliet acknowledged the significant uptick in its GWCP deals, significant progress with cloud transitions, closing over twice as many cloud deals in FY21 than FY20, fueled by demand for data and analytics.
JPMorgan analyst Jackson Ader raised the PT to $160 from $145, indicating a 35.1% upside, and affirmed an Overweight.
Price Action: GWRE shares traded higher by 7.91% at $127.81 in the market session on the last check Friday.

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