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Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q

December 2, 2016 9:28 AM EST
Get Alerts WDAY Hot Sheet
Price: $272.60 +1.61%

Rating Summary:
    36 Buy, 23 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Jefferies maintained a Hold rating on Workday (NYSE: WDAY), and cut the price target to $71.00 (from $79.00), following the company's 3Q earnings report. Non-GAAP EPS of $0.03 was above consensus of ($0.04), total revenue of $409.6M and subscription revenue of $335.7M were also better than consensus of $400.5M and $333.0M, respectively. F4Q guidance for total revenue ($427-430M), subscription ($360-363M), and total billings ($630-635M) were all below consensus estimates of $434M, $366M, and $641M, respectively.

Analyst John DiFucci commented, "WDAY reported solid F3Q results exceeding expectations across all metrics and growing New Subscription ACV by about 32% (or 6% on TTM basis) off a difficult comp, but F4Q top line guidance was below expectations presumably due to slippage of large deals and F18 guidance was materially below estimates. It’s unlikely that investors will be forgiving given WDAY’s high valuation."

For an analyst ratings summary and ratings history on Workday click here. For more ratings news on Workday click here.

Shares of Workday closed at $81.60 yesterday.



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