UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Guidewire Software Following 3Q13 Beat

In a report published Wednesday, J.P. Morgan analyst Sterling Auty reiterated an Overweight rating on

, and raised the price target from $40.00 to $45.00. In the report, J.P. Morgan noted, “In this market, growth is given a premium, and Guidewire continues to deliver on that front. In the quarter, revenue upside came from perpetual license and service revenue, while we prefer to see upside come from recurring term license revenue. But we believe the strength in services leads to future additional recurring term license, and the guidance for 4Q13 is attractive. The preliminary outlook for FY14 sets a base that we believe can be surpassed with continued execution, and as a result we are increasing our target price to $45.” Guidewire Software closed on Tuesday at $40.79.