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Workday initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald analyst Matthew Vanvliet initiated coverage of Workday (WDAY) with an Overweight rating and $265 price target as part of a broader research note launching coverage on select Human Capital Management – HCM – names. Covid drove a sharp acceleration across the industry, but since 2022, HCM battled a “hangover”, with estimates being repeatedly lowered, the analyst tells investors in a research note. Cantor notes however that it sees the industry having settled into a “new normal” as estimates reset to reasonable levels and with valuation multiples “undemanding”. The firm contends that while the “hangover” could last until 2027, the firm sees a “reasonable” risk-reward.

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