Workday price target lowered to $260 from $285 at KeyBanc

KeyBanc lowered the firm’s price target on Workday (WDAY) to $260 from $285 and keeps an Overweight rating on the shares. The firm notes Workday reported largely in-line results and guidance, though cRPO growth of 17.6% was above expectations, even when normalizing for about 1 point of inorganic contributions. Despite some modest Q3 subscription revenue outperformance, the Q4 guide was largely left unchanged, and the company called out headwinds in higher ed, KeyBanc adds. While the firm remains encouraged by the free cash flow trajectory moving forward, it is lowering its price target on the shares.