BTIG Cuts PT on Workday (WDAY) to $88 Following Q3 Results; Affirms at 'Buy'

BTIG lowers its price target on Buy-rated Workday (NYSE: WDAY) from $97 to $88 following Q317 results reported Thursday night.

The firm commented today, Workday reported a slight beat to Street estimates for their fiscal 3Q. The stock is down though ~12% in the after-market, as commentary on macro uncertainty and slipped deals stole the headlines. We find it slightly odd that the company is already calling out deal slippage one month into the current quarter, and worries have been cropping up about an intensifying competitive environment (despite the bullishness from the Analyst Day in September). On top of this, there now seems added seasonality in the model that we didn’t previously anticipate, along with continued compounding around large customer deal terms. All of this adds a certain measure of unpredictability, despite management’s confident tone around the core HCM market (still “at least” 30% growth y/y) and potential inflection around Financials. We still think that long-term Workday is poised to be a leader in the ERP market, but adjust our estimates and price target to account for near-term uncertainty.

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

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