Workday (WDAY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Keith Weiss from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $275.00 price target.
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Keith Weiss has given his Hold rating due to a combination of factors affecting Workday’s current market position. While acknowledging the company’s strong market potential and impressive retention rates, he notes that recent growth expectations have been revised downward, creating concerns about the overall growth trajectory. This has been compounded by a significant reduction in headcount, which may signal underlying demand issues.
Furthermore, despite positive developments in specific areas like FINS adoption and cross-selling, these have not substantially boosted the company’s overall growth. There are also external pressures, such as weak performance in the broader enterprise software sector and risks related to valuation compression. As a result, Weiss has shifted to a more cautious stance, recognizing Workday as a solid business but with growth prospects that are not as robust as previously anticipated.