The Analyst Verdict: Guidewire Software In The Eyes Of 4 Experts

Analysts' ratings for Guidewire Software GWRE over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $235.75, along with a high estimate of $250.00 and a low estimate of $226.00. Highlighting a 0.11% decrease, the current average has fallen from the previous average price target of $236.00.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Guidewire Software by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Guidewire Software. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Guidewire Software compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Guidewire Software's stock. This examination reveals shifts 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.

All You Need to Know About Guidewire Software

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.

Understanding the Numbers: Guidewire Software's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, Guidewire Software showcased positive performance, achieving a revenue growth rate of 20.17% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Guidewire Software's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -12.88%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Guidewire Software's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.94%, the company may encounter challenges in delivering 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 -1.45%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Guidewire Software's debt-to-equity ratio stands notably higher than the industry average, reaching 0.7. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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