Workday price target lowered to $200 from $270 at Oppenheimer

Oppenheimer analyst Brian Schwartz lowered the firm’s price target on Workday (WDAY) to $200 from $270 and keeps an Outperform rating on the shares on lower software group multiples. In the firm views, the Q4 earnings set-up is neutral, with management pre-announcing in-line results earlier this month, a blown out stock/valuation, and a durable margin growth and cash generation outlook balanced by concerns that recent restructuring and CEO transition announcements reflect slowing demand, potentially Q1 and FY27 growth guidance disappointing, and negative SaaS sentiment overhanging valuation.