UPDATE: JPMorgan Assumes Guidewire (GWRE) at Overweight

JPMorgan analyst Jackson Ader assumes coverage on Guidewire (NYSE: GWRE) with a Overweight rating and a price target of $145.00.

The analyst comments "Guidewire is the leading provider of critical software systems into the property & casualty (P&C) insurance market. GWRE’s applications cover policy administration, claims administration, and billing along with a growing number of digital go-tomarket offerings and now analytics to help carriers run their business. We believe this opportunity is less than 25% penetrated and offers GWRE the ability to grow the top line ~15-20%+ over the long term. GWRE has established one of the best competitive positions, and that is allowing them to not only lead the on-premise software opportunity but also transition into the leading provider of cloud solutions for the market. This cloud move provides the opportunity to transition existing customers and new customers onto the platform. We believe GWRE could more than double its revenue simply by transitioning the existing customer base to the cloud deployment. The transition does weigh on near-term profitability, making currentyear and next-year valuation look elevated compared to what we believe the longterm opportunity represents, which is why our valuation is based on our 10-year DCF."

For an analyst ratings summary and ratings history on Guidewire click here. For more ratings news on Guidewire click here.

Shares of Guidewire closed at $110.75 yesterday.

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