Morgan Stanley analyst Keith Weiss maintained a Hold rating on Workday today and set a price target of $280.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Keith Weiss has given his Hold rating due to a combination of factors surrounding Workday’s recent performance and strategic moves. While Workday reported strong Q3 results with subscription revenues and operating margins exceeding expectations, much of this growth was attributed to recent acquisitions, such as Paradox and Sana. These acquisitions contributed significantly to the subscription backlog and revenue figures, raising concerns about the sustainability of organic growth.
Looking forward, the guidance for Q4 also reflects contributions from acquisitions, which may not fully address investor concerns about the company’s long-term growth prospects. Additionally, while Workday’s AI solutions showed promise, their impact was largely driven by acquired products, which may not convince investors of the inherent strength of Workday’s core business. As a result, the Hold rating reflects a cautious stance on the company’s ability to maintain growth without relying heavily on mergers and acquisitions.
Weiss covers the Technology sector, focusing on stocks such as Microsoft, Atlassian, and Adobe. According to TipRanks, Weiss has an average return of 11.1% and a 60.65% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also downgraded the stock to a Hold with a $246.00 price target.