Bernstein analyst Mark Moerdler maintained a Buy rating on Workday today and set a price target of $304.00.
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Mark Moerdler has given his Buy rating due to a combination of factors that highlight Workday’s steady performance and potential for future growth. Despite delivering an in-line quarter, Workday slightly exceeded expectations in subscription revenue and operating margins. The company also raised its revenue guidance for FY26, primarily due to the anticipated benefits from its recent acquisition of Paradox, indicating confidence in its growth trajectory.
Moerdler appreciates Workday’s consistent improvement in profitability, driven by operational leverage and reduced stock-based compensation. Although the guidance for the second half of FY26 was conservative, the management’s optimistic outlook on business momentum suggests potential upside. The analyst believes that Workday’s fundamental strengths, coupled with margin improvements and stability in revenue growth, make it a compelling value story with room for future growth, particularly with the potential benefits from AI advancements.
Moerdler covers the Technology sector, focusing on stocks such as Oracle, Microsoft, and Workday. According to TipRanks, Moerdler has an average return of 19.9% and a 76.85% success rate on recommended stocks.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $325.00 price target.