- BofA analyst Brad Sills downgraded Guidewire Software Inc (NYSE:GWRE) to Underperform from Neutral with a price target of $125, down from $132, implying an 11% upside.
- While Sills said the company outlined “healthy progress” with its cloud transition at its analyst day last week, shares are currently trading at a growth-adjusted multiple in line with the small-to-mid cap software peers. He believes a “best-case scenario” for ARR growth is high teens, which he views unlikely to drive multiple material expansion.
- Sills also notes that Duck Creek (DCT) software revenue growth is estimated to be 37% in FY21, outpacing Guidewire, leading him to believe that the risk/reward is “more attractive in other software stocks.”
- Price Action: GWRE shares traded lower by 4.96% at $112.60 on the last check Monday.
PreMarket Prep Stock Of The Day: General Electric Company
One of the worst-performing stocks in the greatest bull market has once again disappointed investors with a mixed fourth-quarter earnings report. That company is General Electric Company (NYSE: GE), which is the PreMarket Prep Stock of the Day.
