Monness analyst Brian White has maintained their neutral stance on WDAY stock, giving a Hold rating yesterday.
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Brian White has given his Hold rating due to a combination of factors relating to Workday’s recent performance and market conditions. Despite Workday’s efforts to expand its platform and embrace new technologies like generative AI, the company faced a challenging 2024, underperforming in a tech rally and experiencing a 7% stock decline. This underperformance is partly attributed to increased competition and a fragile macroeconomic environment.
Additionally, while Workday is expected to meet revenue and EPS estimates for 4Q:FY25, there is an anticipated deceleration in growth compared to previous quarters. The company has also announced significant workforce reductions, indicating operational challenges ahead. However, these reductions may positively impact operating margins and profits in the future, suggesting potential stability yet warranting caution in the current landscape.
According to TipRanks, White is a top 100 analyst with an average return of 20.1% and a 68.37% success rate. White covers the Technology sector, focusing on stocks such as Apple, Oracle, and MongoDB.
In another report released yesterday, Redburn Atlantic also initiated coverage with a Hold rating on the stock with a $250.00 price target.