In a report released today, Derrick Wood from TD Cowen maintained a Buy rating on Workday (WDAY – Research Report), with a price target of $330.00.
Derrick Wood has given his Buy rating due to a combination of factors that indicate Workday’s solid performance and promising growth prospects. Despite the modest fourth-quarter beat, Wood acknowledges the company’s ability to exceed its guided customer relationship management (CRM) product order (cRPO) growth, signaling underlying business strength. Wood also recognizes the management’s consistent view of the macroeconomic environment and their reiterated confidence in achieving high-teen revenue growth. This optimism is supported by strategic investments in finance, international markets, and go-to-market initiatives with partners.
Further bolstering Wood’s positive outlook are the strong international performance, particularly in key markets like the UK, Spain, France, Australia, and Japan, driven by improved execution and new partnerships. The record number of platform deals, coupled with robust growth in the finance pipeline and key industries like healthcare, education, and state and local government, underscores Workday’s competitive positioning. Despite the conservative forward guidance on cRPO growth and free cash flow, Wood is persuaded by the reaffirmed long-term revenue growth and margin targets, which include the strategic acquisition of HiredScore. The comprehensive assessment of these elements underpins Derrick Wood’s conviction in recommending Workday as a Buy.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $350.00 price target.
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Workday (WDAY) Company Description:
Based in California and founded in 2005, Workday, Inc. provides enterprise cloud applications for finance and human resources worldwide. It delivers financial management, human capital management, and analytics applications designed for companies, educational institutions, and government agencies.
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