BMO Capital analyst Daniel Jester reiterated a Buy rating on Workday today and set a price target of $285.00.
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.
Daniel Jester has given his Buy rating due to a combination of factors that highlight Workday’s strategic advancements and financial potential. The company has made significant strides in AI-centric innovation, including new partnerships and a clear pricing model for AI, which are expected to drive future growth. Additionally, the acquisition of Sana and the introduction of new AI agents demonstrate Workday’s commitment to expanding its capabilities in HR and finance, areas where adoption is still developing but promising.
Workday’s updated financial targets for FY28, particularly the aspiration of achieving $15 FCF/share, suggest a strong growth trajectory that could mitigate concerns about macroeconomic uncertainties. The company’s commitment to improving EBIT margins and reducing stock-based compensation further supports this positive outlook. Despite a slightly slower growth rate in subscription revenue, the potential for significant upside in share value remains, driven by strategic initiatives and a focus on key industry verticals.
Jester covers the Technology sector, focusing on stocks such as Intuit, Dayforce Inc, and BlackLine. According to TipRanks, Jester has an average return of 6.3% and a 56.99% success rate on recommended stocks.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $300.00 price target.