In a report released today, Daniel Jester from BMO Capital maintained a Buy rating on Workiva (WK – Research Report), with a price target of $108.00.
Daniel Jester has given his Buy rating due to a combination of factors including Workiva’s impressive revenue performance and strong subscription growth outlook. The company reported its largest revenue beat in two years and projected a 20% growth in subscription revenue for FY25, highlighting its robust performance across various product lines despite concerns about sustainability reporting mandates in Europe.
Moreover, Workiva’s forward-looking current RPO grew by approximately 23% year-over-year in the fourth quarter, and total revenue increased by 20% year-over-year, surpassing guidance. The company’s high-value contracts and net retention rate have improved, indicating strength in the higher end of its market. Although there are uncertainties regarding regulatory-driven demand, Workiva’s strategic investments in sustainability reporting and cross-selling opportunities are expected to support its medium-term growth, justifying the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $130.00 price target.