TD Cowen analyst Derrick Wood has reiterated their bullish stance on WDAY stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Derrick Wood’s rating is based on several key factors that suggest a positive outlook for Workday’s stock. The company is experiencing stable mid-teens growth trends, primarily driven by effective cross-selling strategies within its existing customer base. Additionally, there is positive feedback regarding Workday’s new AI products, although the monetization of these products is still in its early stages.
Despite macroeconomic uncertainties, Workday’s demand trends appear stable, with strong traction in cross-selling and product attachment efforts. The company’s valuation, at approximately 18 times EV/CY26E FCF, is considered attractive for a growth-at-a-reasonable-price (GARP) investment. Furthermore, the expectation of growth acceleration in the second half of the fiscal year, supported by revenue recognition tailwinds from previous large deals, contributes to the Buy rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $298.00 price target.