The ASX All Ords Index (ASX: XAO) closed in the green on Friday afternoon, up 0.22% for the day. For the year-to-date, the index is 5.45% higher.
The index gains are decent, but some ASX All Ords stocks have seen significantly stronger growth in 2025.
Fineos Corporation Holdings PLC (ASX: FCL) shares ended the week 1.4% lower to $2.82 at the close of the ASX on Friday afternoon. But the latest dip has barely touched the huge gains the Irish public software development company has enjoyed this year. For the year-to-date, the company's shares have grown 49.2%.
Now, the team at Macquarie Group Ltd (ASX: MQG) has weighed in on where it expects the company's shares to go next.
The ASX All Ords stock tipped to jump higher
In a note to investors, Macquarie confirmed its outperform rating and $3.48 target price on Fineos shares. These are unchanged from September.
At the time of writing, the target price implies that the ASX All Ords small-cap stock's shares could climb another 23.4% over the next 12 months.
"FCL's medium-term revenue mix targets imply ~25% Subscription fee growth, compared to MRE forecasts +10%. The implied Subscription fee growth is based on FCL's targeted Subscription fees mix of 65% in FY27, assuming 2.5% Services revenue growth estimates," the broker said in its note.
Latest Guidewire Q1 FY26 results are a read-through for FINEOS
Macquarie has used the first quarter FY26 Guidewire Software Inc (NYSE: GWRE) results as a "read-through" for Fineos. This is where the results or performance of one company are used to predict or explain what might happen with another company in the same industry.
The broker noted that Guidewire posted a 22% increase in annual recurring revenue (ARR), a 27% year-over-year rise in revenue, and a 20% increase in operating cash flow margin.
The company also raised its guidance for the full year, now expecting around 20% growth in both ARR and revenue, and about 50% growth in operating cash flow.
When comparing valuations, Fineos trades at a much lower enterprise value/sales multiple than Guidewire. Fineos is valued at around 3.9 times sales, which is sharply lower (73%) than Guidewire's valuation at 14.4 times sales.
Looking at financial metrics, the Guidewire software revenue growth is much higher than that of Fineos. Guidewire's subscription and license revenue grew 23% over the past year, while Fineos' software revenue grew only 5.5%.
Overall, Fineos is at a material discount to Guidewire. Although Macquarie's analysts note that this could be because Guidewire has a different mix of revenue types, and spent less of its revenue on capitalised R&D compared to Fineos in the first half of FY25.
