Guidewire Software shares climb on cloud migration analysis

Guidewire Software shares rose 4.4% in morning trading Tuesday after Piper Sandler maintained its Overweight rating and $210 price target on the stock.

The firm published an analysis of the company's cloud migration opportunity. Piper Sandler estimated that about 125 on-premises customers have not yet moved to Guidewire's cloud platform. The firm said this group could generate at least $350 million in additional annual recurring revenue from migrations alone.

The estimate does not include revenue from new cloud customers from an $8 billion total addressable market or additional sales opportunities worth $3.5 billion. The analysis supported the firm's view that the company can achieve mid-20% ARR growth.

A Form 144 filing showing a planned insider sale of restricted securities was disclosed Tuesday. Such transactions under pre-arranged 10b5-1 plans are standard practice.

Among 16 analysts covering the stock, 12 have Buy ratings and 4 have Hold ratings. The average price target stands above current trading levels.

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