Guidewire Software (NYSE:GWRE) is one of the best software application stocks to buy according to Hedge Funds.
On January 9, Rishi Jaluria from RBC Capital maintained his Outperform rating on Guidewire Software (NYSE:GWRE). He estimated a price target of $300, which leads to almost 81% upside potential from the current level.
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Jaluria’s rating came at the back of the company’s recent announcement of a new $500 million share buyback program, which has been authorized with immediate effect. This follows the successful completion of a previous buyback program. Jaluria considers this move to enhance the company’s capital return discipline, backed by an impressive balance sheet and strong cash generation ability.
On January 9, Citizens also reaffirmed its favorable view of Guidewire Software (NYSE:GWRE), assigning a Market Outperform rating to the stock. The firm also estimated an 81% upside based on a $300 price target.
The firm reflected on broader optimism surrounding its latest buyback program. Besides that, it noted the underperformance of Guidewire Software (NYSE:GWRE) shares relative to the Russell 3000 index over the last twelve months. This trend continued during the start of 2026, and currently the stock trades at a 12% discount to the index.
Guidewire Software (NYSE:GWRE) offers a cloud-based platform for property and casualty (P&C) insurers around the globe. Through the platform, it provides several applications, such as PolicyCenter, ClaimCenter, and BillingCenter, that facilitate core operations for P&C insurance companies. Other offerings include Guidewire Rating Management, Guidewire InsuranceNow, Guidewire Reinsurance Management, Guidewire Client Data Management, and more.
While we acknowledge the potential of GWRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
