Guidewire Software (NYSE:GWRE) is a top software application stock according to Hedge Funds. Rishi Jaluria from RBC Capital maintained an Outperform rating with a $300 price target, suggesting an 81% upside potential. Citizens also reaffirmed a Market Outperform rating with the same price target, highlighting the company’s recent $500 million share buyback program.

The new buyback program aims to enhance capital return discipline, leveraging the company’s strong balance sheet and cash generation ability. Guidewire Software (NYSE:GWRE) has underperformed compared to the Russell 3000 index over the past year, trading at a 12% discount currently. Its cloud-based platform offers various applications for P&C insurers globally, supporting core operations.

While Guidewire Software (NYSE:GWRE) shows promise as an investment, some AI stocks may offer greater upside potential. Investors seeking undervalued AI stocks can explore opportunities in the market. For more insights, check out the best short-term AI stock recommendations.

Read more at Yahoo Finance: Here is Why Guidewire Software (GWRE) is Highly Favored by Hedge Funds