Workday (WDAY) PT Lowered to $290 at Evercore ISI

Evercore ISI analyst Kirk Materne lowered the price target on Workday (NASDAQ: WDAY) to $290.00 (from $300.00) while maintaining a Outperform rating.

The analyst comments "Bottom line: We are anticipating in line F2Q results (i.e. Beat/Keep) as the macro environment continues to be choppy, and after lowering the bar (slightly) last quarter we expect the company to continue to take a cautious approach to F3Q and FY25 guidance. As such, we are expecting subscription revenue in line with to slightly above our $1.895bn estimate and CRPO to be roughly in line with guidance at ~15.5%. Given the choppier macro economy, we are expecting CRPO guidance to remain in the 15%-16% range for F3Q and no major change to the FY25 subscription revenue forecast of $7.7-$7.725bn. We are slightly lowering our FY26 subscription revenue growth expectations from ~17% to ~15% to better reflect lowered 2H CRPO growth. At ~6x EV/CY25 sales and ~24.5x EV/CY25 FCF, we believe the buy-side is already baking in a lower rate of revenue growth in FY26 so the faster the Street resets estimates, the better. Our PT goes to $290 which takes into account a more conservative revenue outlook offset by slightly higher op. margins in FY26."

You May Also Be Interested In

• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Phillips 66, Marathon Merger Talks Collapsed - Semafor
• DA Davidson Reiterates Neutral Rating on Timken (TKR)