JP Morgan raises Guidewire Software target price to $300 from $288.

JP Morgan raises Guidewire Software target price to $300 from $288.

JP Morgan has significantly increased its target price for Guidewire Software (NYSE: GWRE) to $300 from the previous estimate of $288. This upward revision reflects a positive outlook on the company's growth prospects and financial performance.

In the latest quarterly filing, Guidewire Software reported a strong performance, with annual recurring revenue (ARR) reaching $960 million in Q3 FY2025, representing an 18.3% year-over-year (YoY) growth. This growth was driven by 17 cloud deals and a 32% increase in subscription revenue. The company's cloud-driven turnaround has been validated by non-GAAP gross margins hitting 65.4% and a robust balance sheet with $548 million in cash.

JP Morgan's new target price of $300 underscores confidence in Guidewire Software's ability to sustain its growth trajectory. The firm's transition to cloud-native solutions, particularly through its InsuranceNow platform and AI tools, has positioned it as a leader in the insurtech sector. The company's strategic pivot has not only improved its revenue model but also enhanced its margin expansion and balance sheet strength.

Analysts have been increasingly optimistic about Guidewire Software's prospects. Multiple firms have raised their price targets and upgraded their ratings, with MarketBeat.com assigning a "Moderate Buy" rating to the stock. The insurtech sector, traditionally a sleepy market, is now witnessing significant transformation, with Guidewire Software at the forefront.

The recent insider selling activity, however, has raised some concerns. President John P. Mullen and CEO Michael George Rosenbaum sold a combined 4,400 shares, but these sales represent a small fraction of their total holdings and do not significantly impact the company's overall direction.

In summary, JP Morgan's upward revision of the target price for Guidewire Software to $300 is a testament to the company's strong performance and promising future. The insurer's successful transition to cloud-native solutions and robust financials have solidified its position as a leader in the insurtech sector.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-sculptor-capital-lp-has-3509-million-stock-position-in-guidewire-software-inc-gwre-2025-08-30/
[2] https://www.ainvest.com/news/guidewire-cloud-driven-turnaround-compelling-case-growth-insurtech-2509/