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Workday’s Margin Improvement and Growth Potential Underpin Buy Rating

Workday’s Margin Improvement and Growth Potential Underpin Buy Rating

In a report released today, Keith Weiss from Morgan Stanley maintained a Buy rating on Workday (WDAYResearch Report), with a price target of $330.00.

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Keith Weiss has given his Buy rating due to a combination of factors that highlight Workday’s potential for margin improvement and strong financial performance. Despite concerns about slowing growth and recent headcount reductions, Workday’s management has provided guidance that aligns with or exceeds previous estimations, suggesting an optimistic outlook for future growth.
Additionally, the strategic reduction in workforce is anticipated to enhance operating margins significantly. Weiss expects that the cost savings from reduced employee expenses could result in a substantial increase in operating margins, potentially exceeding the company’s fiscal year 2027 target ahead of schedule. This combination of expected financial efficiency and positive growth signals underpins the Buy rating for Workday’s stock.

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