Workday price target lowered to $275 from $310 at Stifel

Stifel lowered the firm’s price target on Workday (WDAY) to $275 from $310 and keeps a Hold rating on the shares. Workday delivered “a typical quarterly beat across revenue and margins,” but shares traded down in the after-hours session as 15.6% cRPO growth, just in the middle of management’s guided range, was aided by about 50 basis points of benefit from short-term “tenant” contracts that were not historically included in cRPO, the analyst tells investors. With subscription/bookings growth likely to remain in the mid-to-low-teens area in the coming quarters, the firm does not expect operating margin upside alone to drive meaningful multiple expansion from current levels, the analyst added.