BMO Capital analyst Daniel Jester has maintained their bullish stance on WDAY stock, giving a Buy rating today.
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Daniel Jester has given his Buy rating due to a combination of factors that highlight Workday’s potential for growth and stability. The company’s fiscal third-quarter results showed a slight increase in revenue and margins, aligning with previous outlooks and indicating a steady performance. Despite some areas of weakness, particularly in state and local government sectors, the overall growth trajectory remains positive, supported by strong subscription revenue and AI-related bookings.
Workday’s strategic acquisitions and focus on enhancing user experience and AI capabilities are seen as catalysts for future growth, particularly in fiscal year 2027. The company’s guidance for subscription growth and EBIT margins remains consistent, suggesting a reliable path forward. Additionally, the expansion of free cash flow margins and the company’s ability to maintain a multi-year growth runway in key business areas further support the Buy rating.
Jester covers the Technology sector, focusing on stocks such as Workiva, Intuit, and Autodesk. According to TipRanks, Jester has an average return of 4.5% and a 49.76% success rate on recommended stocks.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $290.00 price target.