William Blair analyst Jake Roberge has maintained their bullish stance on WDAY stock, giving a Buy rating on January 28.
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Jake Roberge has given his Buy rating due to a combination of factors that highlight Workday’s strategic positioning and financial outlook. The restructuring plan, which involves an 8.5% workforce reduction, is aimed at enhancing profitability and aligns with Workday’s focus on strategic growth areas such as AI adoption and geographic expansion. Despite the short-term costs associated with the restructuring, the company expects to meet or exceed its non-GAAP guidance for the fourth quarter of fiscal 2025.
Moreover, Workday’s valuation appears attractive, trading at a discount compared to its peer group median. While macroeconomic challenges add some complexity, Roberge views Workday as a leading player in the human capital management sector, with significant opportunities to capture market share in financials as ERP systems transition to the cloud. Risks include the company’s ability to gain traction with enterprise customers and effectively leverage AI opportunities, but overall, the prospects for growth and profitability underpin the Buy rating.
In another report released on January 28, Bernstein also maintained a Buy rating on the stock with a $298.00 price target.