Analyst Derrick Wood of TD Cowen maintained a Buy rating on Workday (WDAY – Research Report), retaining the price target of $290.00.
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Derrick Wood has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for Workday. Despite recent macroeconomic headwinds, particularly in the EMEA region, Workday has shown traction with its core initiatives such as partnerships, financial solutions (FINS), and artificial intelligence (AI), which are expected to drive growth into FY26.
Wood also notes that while recent layoffs might cause some short-term disruption, they have the potential to enhance margins. The attractive valuation at approximately 20x EV/CY26E free cash flow, even with the possibility of lower double-digit growth, contributes to the Buy recommendation. Additionally, Workday’s strategic focus on offshore resources and the anticipated high-end growth of its committed revenue performance obligation (cRPO) further reinforce the positive outlook.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $310.00 price target.