Workday price target raised to $158 from $155 at KeyBanc

KeyBanc raised the firm’s price target on Workday (WDAY) to $158 from $155 and keeps an Overweight rating on the shares. The firm notes Workday reported slightly better current remaining performance obligations growth of 15.4%, highlighting strong new annual contract value growth driven by its core biz and AI traction. While Q2 cRPO growth outlook is slightly lower, KeyBanc is encouraged by Workday’s modest raise to full year operating margin outlook to 30.5%, demonstrating its ability to accelerate pace of product innovation, while expanding margins. The firm acknowledges the heightened AI skepticism and execution challenges amid management changes, though with shares currently trading at nine times FY28 free cash flow, KeyBanc sees compelling risk/reward.