Guidewire Software: DA Davidson maintains Neutral, PT raised to $250 from $246.

Guidewire Software: DA Davidson maintains Neutral, PT raised to $250 from $246.

In a move that underscores the continued optimism surrounding Guidewire Software's performance, D.A. Davidson has revised its rating and price target for the company. The brokerage firm has maintained a Neutral rating for Guidewire Software (NYSE:GWRE) but has increased its price target to $250 from $246, reflecting recent positive developments and strong financial health.

The new target price is within the current analyst range of $155-$305, with Guidewire Software delivering a robust 50.76% return over the past year [1]. The company's fourth-quarter performance, which included record and accelerating bookings with 22% year-over-year fully ramped ARR growth, has been cited as a key driver behind this adjustment. Additionally, Guidewire's overall financial health score, as analyzed by InvestingPro, stands at 18.61% revenue growth, further bolstering the confidence in the company's trajectory.

DA Davidson's decision to raise the price target comes amidst a broader trend of analysts upgrading their ratings and targets for Guidewire Software. Oppenheimer, for instance, has maintained an Outperform rating while raising its price target to $300 from $275, citing the company's strong fourth-quarter performance and robust financial health [2]. Similarly, Raymond James has also highlighted key growth drivers, including increasing carrier modernization needs, accelerating cloud migrations, and potential diversification through product development in areas like pricing and claims automation.

Guidewire Software's fourth-quarter 2025 earnings report further underscored its strong performance. The company reported an earnings per share (EPS) of $0.84, surpassing the forecasted $0.63, and revenue of $356.57 million, which exceeded the anticipated $337.85 million. The company's annual recurring revenue (ARR) also surpassed $1 billion, marking a 19% year-over-year growth on a constant currency basis.

In conclusion, the positive outlook from D.A. Davidson, along with other analyst upgrades, reflects the broader confidence in Guidewire Software's growth prospects and financial health. As the company continues to demonstrate strong performance and innovation, investors can expect further positive developments to be reflected in the stock's valuation.

References:
[1] https://in.tradingview.com/news/reuters.com,2025:newsml_L5N3UV0CO:0-apple-sanofi-watts-water-technologies/
[2] https://www.ainvest.com/news/guidewire-software-oppenheimer-maintains-outperform-pt-raised-300-275-2509/