Analyst Kash Rangan of Goldman Sachs reiterated a Buy rating on Workday (WDAY – Research Report), with a price target of $310.00.
Kash Rangan has given his Buy rating due to a combination of factors that suggest a robust growth trajectory for Workday. The company’s reaffirmed fiscal year 2025 subscription revenue guidance—indicating a healthy 17.5% year-over-year growth—and a first-quarter CRPO (calculated remaining performance obligation) growth forecast of 18% showcase a strong forward momentum. The recent financial results align with expectations, with revenue growth and operating margin slightly outpacing consensus estimates, underscoring Workday’s consistent performance. Despite the after-hours stock price dip, Rangan’s analysis indicates that the market’s concerns about growth stagnation are likely unfounded given Workday’s solid execution track record and multiple avenues for sustained expansion.
Rangan’s optimism is further bolstered by a series of strategic moves by Workday, including a growth trend where cRPO has increased by 20% for six consecutive quarters, suggesting potential for revenue revisions as the year progresses. He also highlights Workday’s targeted strategies in untapped markets such as the mid-market and international sectors, where there is significant room for growth. Additionally, Rangan notes that the long-term potential of AI in Workday’s offerings is not yet fully appreciated by the market. This is evident in Workday’s strategic acquisition of HiredScore, which is expected to enhance its product suite and pricing power. Overall, Rangan seems confident that Workday’s continued investment in key areas like finance, international markets, and AI, coupled with its resilient performance amid broader sector slowdowns, presents a compelling case for its Buy rating.
According to TipRanks, Rangan is a 5-star analyst with an average return of 12.6% and a 62.77% success rate. Rangan covers the Technology sector, focusing on stocks such as Samsara, Adobe, and Intuit.
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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