tiprankstipranks
Taking Stock of Guidewire’s Risk Factors
Market News

Taking Stock of Guidewire’s Risk Factors

Guidewire Software, Inc. (GWRE) provides software solutions for the property and casualty insurance market across the globe. While the company’s recent first-quarter revenue declined year-over-year, it still beat analysts’ estimates.

The decline in revenue was attributable to lower license revenue, which offset gains from subscription and support as well as services revenue. Meanwhile, GWRE’s first-quarter bottom-line also exceeded estimates.

With these developments in mind, let’s have a look at what’s changed in GWRE’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, GWRE’s top risk category is Finance & Corporate, contributing 41% to the total 46 risks identified. In its recent quarterly report, the company has changed one key risk factor under the Tech & Innovation risk category.

GWRE highlighted that as it offers complex services and products, undetected errors or failures may take place, particularly when the company first introduces services and products, or when it releases new versions or updates. (See Insiders’ Hot Stocks on TipRanks)

Any real or perceived errors or failures in GWRE’s services and products could affect the company’s reputation, lead to loss of customers, or a decline in sales and renewal rates. Such a situation may also subject GWRE to liability for breach of warranty claims.

Compared to a sector average of 16.6%, GWRE’s Tech & Innovation risk factor is at 17.4%.

Wall Street’s Take

On December 3, BTIG analyst Matthew VanVliet reiterated a Buy rating on the stock and increased the price target to $146 from $138 (26.2% upside potential).

The analyst views GWRE’s first-quarter performance favorably and noted that the growth in annual recurring revenue points toward an acceleration in cloud bookings as well as recent go-lives at a number of major customers.

Consensus on the Street is a Hold based on 2 Buys, 5 Holds, and 2 Sells for the stock. The average Guidewire price target of $125.60 implies a potential upside of 8.56% for the stock. That’s after a drop of 8.4% in the company’s share price over the past month.

Related News:
TELUS Partners with IBM to Deliver 5G Across Canada
Astra to Launch for NASA in January
Accenture Invests in Interos; Street Says Buy

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles