J.P. Morgan analyst Mark Murphy maintained a Buy rating on Workday (WDAY – Research Report) today and set a price target of $310.00.
Mark Murphy has given his Buy rating due to a combination of factors that highlight Workday’s strong performance and growth potential. The company reported a solid fourth-quarter performance, surpassing investor expectations with a broad-based beat on revenue and a record increase in its 12-month subscription backlog. This was aided by favorable linearity in new bookings and higher-than-expected early renewals, showcasing the company’s ability to maintain momentum despite macroeconomic challenges.
Additionally, Workday’s full-suite offerings continue to gain traction, with significant growth in new annual contract value for its financial management solutions. The company has also made notable inroads in the state and local government, higher education, and EMEA markets, further expanding its customer base. These achievements, coupled with a strong operating margin and free cash flow, underscore Workday’s potential for sustained growth, supporting Murphy’s optimistic outlook and Buy rating.
Murphy covers the Technology sector, focusing on stocks such as Salesforce, Akamai, and Adobe. According to TipRanks, Murphy has an average return of 11.4% and a 59.21% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $320.00 price target.