11:56 AM EDT, 10/04/2024 (MT Newswires) -- Guidewire Software ( GWRE ) might present new long-term financial targets during its Oct. 10 investor day, including a $2 billion annual recurring revenue in fiscal year 2030, Oppenheimer said Friday in a note.

The firm also projects fiscal 2030 gross margin at mid-70% and operating cash flow margin at mid-30% for the technology company.

Guidewire Software ( GWRE ) is expected to formally set fiscal 2027 and 2028 targets of $1.5 billion ARR and OCF margin of 29% to 32% on its investor day, Oppenheimer said.

"We expect any forward growth rate commentary to remain in the mid-teens range, supported by Tier-1 adoption, cloud migrations, and price optimization," the firm said. "We still see headroom to estimates with cloud conversions, T-1 adoption, and [direct written premium] true-ups sustaining growth momentum."

Oppenheimer maintained its outperform rating on the stock, while raising its price target to $200 from $185 "to reflect elevated confidence in GWRE's long-term trajectory."

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