Workday price target raised to $255 from $230 at Piper Sandler

Piper Sandler raised the firm’s price target on Workday (WDAY) to $255 from $230 and keeps a Neutral rating on the shares. After two years of moderating growth, there were a few major surprises relative to Q1 results, the firm notes. Actual subscription growth moderated again to 13.4%, albeit slightly above expectations. Q2 subscription growth outlook was set at a mid-point of 13.5%, hinting at optimism of a potential stabilization with large contract deployments in the second half of the year helping boost growth rates into Q4. However, the external backdrop remains fluid with the unknown future impacts from policy and tariff changes flagged as potential headwinds that could emerge within education and international, Piper adds.