Streetview: Guidewire's cloud transition boosts growth prospects

Guidewire Software

08/09/2023 19:39

** Shares of Guidewire Software  GWRE.N  soar 10.7% to $93.9
as brokerages raise PTs after Q4 results beat on strength in its
cloud business
    ** Stock hits highest level since April 2022
    
    CLOUD TRANSITION TO ACCELERATE REVENUE DESPITE HEADWINDS
    ** J.P.Morgan ("overweight"; PT:$100) estimates GWRE could
more than double its existing revenue by migrating its customer
base to the cloud, Q4 traction and cloud deals boost 2025 ARR
(annual recurring revenue) outlook 
    ** Oppenheimer ("outperform"; PT:$100) says encouraged by 
solid sales activity and margin targets despite macro headwinds;
raises PT to $100 from $95
    ** Stifel ("buy"; PT:$95) says gains from cloud transition
materializing earlier than expected and will fuel long-term
growth 
    ** RBC ("outperform"; PT:$96) expects cloud ARR to represent
50%+ of total ARR by year-end, sees revenue growth and margins
steadily expanding

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))