Guidewire Software (NYSE:GWRE) is one of the Best Software App Stocks to Buy According to Hedge Funds.
On January 9, RBC Capital’s Rishi Jaluria maintained his Outperform rating on Guidewire Software (NYSE:GWRE). He estimated a price target of $300, implying an upside potential of almost 81% from the current level.
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Jaluria’s rating came following the company’s recent announcement of a new $500 million share buyback program, which has been authorized effective immediately. This follows the successful completion of a previous buyback program. Jaluria believes this move improves the company’s return on capital discipline, backed by an impressive balance sheet and strong cash generation capacity.
On January 9, Citizens also reaffirmed its favorable opinion on 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 company reflected on the broader optimism surrounding its latest buyback program. On top of that, he highlighted the poor performance of Guidewire Software (NYSE:GWRE) stock relative to the Russell 3000 index over the past twelve months. This trend continued into early 2026 and the stock is currently trading at a 12% discount to the index.
Guidewire Software (NYSE:GWRE) provides a cloud-based platform for property and casualty (P&C) insurers around the world. Through the platform, it provides various applications such as PolicyCenter, ClaimCenter and BillingCenter that facilitate the core operations of general insurance companies. Other offerings include Guidewire Rating Management, Guidewire InsuranceNow, Guidewire Reinsurance Management, Guidewire Client Data Management and more.
While we recognize GWRE’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None. This article was originally published in Internal jumpsuit.