Workday price target lowered to $115 from $175 at Stifel

Stifel lowered the firm’s price target on Workday (WDAY) to $115 from $175 and keeps a Hold rating on the shares. Management’s commentary around its desire to accelerate AI investments to fuel future growth “makes it clear” the FY28 35% operating margin target “will not be met,” the analyst tells investors. Beyond the “disappointing” margin guidance, the Q1 subscription growth outlook points to a clear deceleration in the business, the analyst added.