Analyst Note| Dan Romanoff, CPA |
Wide-moat Guidewire reported good results relative to guidance and broader street expectations for its third quarter. Implied guidance for fourth quarter is in line with our revenue assumption and just shy of our profitability estimates. The firm also provided a constructive preliminary outlook for next year. Based on modestly lower profitability assumptions, we lower our fair value estimate to $120 per share, from $126.