Morgan Stanley analyst Keith Weiss maintained a Hold rating on Workday today and set a price target of $255.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Keith Weiss has given his Hold rating due to a combination of factors that highlight both the potential and challenges facing Workday. The company has set ambitious financial targets, aiming for a durable >20% free cash flow growth per share annually through fiscal year 2028. This target, while promising, depends on various growth scenarios in subscription revenue, which introduces some uncertainty in achieving these goals.
Additionally, Workday’s advancements in AI and data capabilities are noteworthy, with significant growth in AI-based solutions and the expansion of their Data Cloud offering. However, the successful execution of these initiatives is crucial for sustaining long-term growth. The company’s strong customer base and partnerships provide a solid foundation, yet the need to balance growth with margin expansion remains a critical factor in the Hold rating.
Weiss covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and CoreWeave. According to TipRanks, Weiss has an average return of 13.0% and a 64.50% success rate on recommended stocks.
In another report released yesterday, Piper Sandler also upgraded the stock to a Hold with a $235.00 price target.