Guidewire Software (GWRE) delivered a solid close to fiscal 2026, with its Q4 annual recurring revenue coming in above the high end of guidance, and forecast 18% growth excluding forex for fiscal 2027, Oppenheimer said in a note Friday.
The investment firm said it was "comforted to see pipeline conversion return to normal, and incrementally positive on PricingCenter traction."
Oppenheimer said it sees potential for estimates to trend higher as management is approaching the outlook prudently.
The firm noted that the fiscal 2027 annual recurring revenue outlook at $1.45 billion to $1.46 billion bracketed consensus but was also likely a shade below bullish expectations of over 18%. Management's outlook assumes that fiscal 2027 attrition normalizes against record-low levels, and lower backlog mix, according to the note.
Oppenheimer reiterated its outperform rating on Guidewire and lifted the price target to $210 from $200.
Shares of Guidewire Software were down 22% in Friday trading.
Price: $158.24, Change: $-44.62, Percent Change: -22.00%