UPDATE: Stifel Nicolaus Initiates Hold on Guidewire Software
Stifel Nicolaus initiates its coverage on Guidewire Software (NYSE: GWRE) with a Hold rating based on current valuation.
Stifel Nicolaus notes, "We are initiating coverage of Guidewire Software, Inc. (GWRE) with a Hold rating on the shares, entirely due to the impressive run that the stock has had since its IPO on January 25th at $13 (+77%, vs. Nasdaq +7%) that positions the company's valuation at 4.5x EV/CY13E Sales, which we believe to be a fair multiple for a business with an on-premise term-based license model and 15-20% visible near and mid-term growth characteristics. Valuation aside, however, we believe that Guidewire's Insurance Suite sits at the forefront of a trend toward modernization of property & casualty (P&C) insurance core systems that is still in its early stages."
GWRE closed at $22.95 a share on Friday.
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