UPDATE: JMP Securities Upgrades Guidewire (GWRE) to Market Outperform

March 18, 2022 3:34 AM EDT
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Price: $71.94 +1.34%

Rating Summary:
    9 Buy, 7 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 12 | New: 10
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(Updated - March 18, 2022 5:08 AM EDT)

JMP Securities analyst Joe Goodwin upgraded Guidewire (NYSE: GWRE) from Market Perform to Market Outperform with a price target of $110.00.

The analyst comments "We upgrade our rating on shares of Guidewire and like the company for a number of reasons. First, the company serves a large market that is estimated to be ~$18B where it maintains a leading position. The market is composed of ~2,000 P&C insurers globally, of which Guidewire currently has nearly 500 as customers. More importantly the company has ~25% of the Tier 1 insurers on Guidewire Cloud or on
Guidewire Self-Managed, where a large portion of the market opportunity resides. Second, the company has been executing against its cloud strategy from a go-tomarket and product development perspective. On the product development side, the company has successfully shifted to its six-month release cadence, which has enabled it to deliver upgrades at a more rapid pace to its customers. On the goto-market side, the company has transitioned nicely to a cloud-focused strategy and has sustained momentum in the cloud, as evidenced by the north of 90% of new sales being in the cloud the past two quarters. While Guidewire may have been behind some of its competitors who had chosen to lean into the cloud first, we believe the company’s focus and investments into the cloud strategy have led to the closing of this gap. Third, the P&C insurance market is large and moves at its own pace. Given the execution stability coupled with its current presence in the market, we believe Guidewire is in a great position to benefit from the move to the cloud by these insurers, and note that it is uncommon for insurers to move to a new vendor when moving from on-premises deployments to the cloud."

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 $90.08 yesterday.

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