Kirk Materne, an analyst from Evercore ISI, maintained the Buy rating on Workday (WDAY – Research Report). The associated price target remains the same with $310.00.
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Kirk Materne has given his Buy rating due to a combination of factors including Workday’s stable growth trajectory and its valuation metrics. Even though the partner checks show mixed results, particularly with challenges in the up-market and improvements in the European and mid-market sectors, the current valuation seems to already account for skepticism regarding the company’s FY26 revenue guidance. Materne sees potential in Workday’s flexible margin outlook, as the company continues to invest heavily in R&D, which could lead to improved operational margins.
Furthermore, the interest in Workday’s agentic opportunities is promising, with a notable increase in customer engagement regarding their productivity and efficiency tools. While near-term results might not resolve the ongoing debate between bulls and bears, Materne believes that any significant positive stock movements are more likely to occur in May or June when revenue growth comparisons become more favorable. This outlook, along with a target price of $310, supports the Buy rating despite the recent headcount reduction and mixed market feedback.
According to TipRanks, Materne is a 5-star analyst with an average return of 12.7% and a 61.68% success rate. Materne covers the Technology sector, focusing on stocks such as Salesforce, Adobe, and Microsoft.
In another report released on February 18, Bank of America Securities also maintained a Buy rating on the stock with a $285.00 price target.