- BofA analyst Brad Sills downgraded Guidewire Software Inc GWRE to Underperform from Neutral with a price target of $125, down from $132, implying an 11% upside.
- While Sills said the company outlined "healthy progress" with its cloud transition at its analyst day last week, shares are currently trading at a growth-adjusted multiple in line with the small-to-mid cap software peers. He believes a "best-case scenario" for ARR growth is high teens, which he views unlikely to drive multiple material expansion.
- Sills also notes that Duck Creek (DCT) software revenue growth is estimated to be 37% in FY21, outpacing Guidewire, leading him to believe that the risk/reward is "more attractive in other software stocks."
- Price Action: GWRE shares traded lower by 4.96% at $112.60 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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