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Insurtech Duck Creek Higher After Fire-Data Accord With RedZone

Duck Creek shares rose after the insurance-tech company unveiled an accord with disaster-information provider RedZone.
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Duck Creek Technologies  (DCT) - Get DUCK CREEK TECHNOLOGIES, INC. Report shares rose Tuesday, after the insurtech unveiled an agreement with disaster-information company RedZone.

The agreement enables Duck Creek users to access the wildfire-information service from RedZone, Boulder, Colo.

That service “enables users to identify not only the wildfire risk for a location, but also understand the detailed drivers behind the risk,” Duck Creek said.

“Duck Creek users can now access RedZone’s application programing interface to quickly get site-specific wildfire scores and insights.”

As for the significance of the agreement, “This year has shown us all that the risk of wildfire is increasing at a rapid pace, and that understanding that risk is critical to running a profitable insurance practice,” said Elizabeth Del Ferro, vice president at Duck Creek.

“RedZone’s wildfire underwriting and portfolio management solutions are providing the foundation for carriers, managing general agents, and reinsurers to build profitable portfolios in this area.”

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Also boosting Duck Creek stock: J.P. Morgan raised its rating to overweight from neutral, keeping its price target at $62.

"Duck Creek shares lagged our broader coverage in the first half of 2021, returning 4.2% compared to 5.8% for our coverage and 14.4% for the S&P," Morgan analysts said.

"We are looking for a catchup as we look for bookings growth heading into the company’s August fiscal year-end to propel faster than expected revenue growth into fiscal 2022."

Duck Creek recently traded at $41.93, up 3%. In 2021 through the close of Monday trading, the stock was down 6%.

In other technology news Tuesday, Nokia  (NOK) - Get Nokia Oyj Sponsored ADR Report shares rose sharply, after the storied Finnish telecommunications company raised its earnings estimates.

“In the second quarter Nokia saw continued strength in the business, improving its expectations for the full year,” the company said. “Nokia now expects to revise upward its prior outlook ranges for 2021.”

The company on July 29 plans to provide full details of its revised fully-ear 2021 guidance, along with second-quarter earnings.