Workday (WDAY) PT Raised to $348 as Bernstein 'Likes the Setup for the Year and Beyond'

Bernstein SocGen Group analyst Mark Moerdler raised the price target on Workday (NASDAQ: WDAY) to $348.00 (from $298.00) while maintaining an Outperform rating.

The analyst commented: "A good quarter at a reasonable valuation drives the stock up; Workday delivered solid Q4 results, with a cRPO beat and a good Q1 guide, reiterating FY revenue (even with FX headwind) and raising FY margin guide. But what drove the stock up ~11% in the aftermarket was the setup of recent mixed results / expectations across software and easing concern that Workday’s growth would continue to degrade. Adding to the results was the discussion on the recent announcement of Workday’s AI System of Record for Agents. This novel solution, which is expected to be in use by some customers as soon as Workday Rising, will extend the company’s HCM capabilities of managing full-time and contingent employees to managing the key data of record for AI agents.

Investors have been looking for signs that growth would stabilize in the mid-teens and the quarter’s results combined with the reiterated 14% FY revenue growth guide, which we believe they will beat, has increased confidence. Given the strength of the business and its fundaments, combined with potential upside from AI, we like the setup for the year and beyond. We increase our price target from $298 to $348 as we roll forward our model and raise our target valuation multiple by 1x."

You May Also Be Interested In

• Deutsche Bank Downgrades Workday (WDAY) to Hold
• Lockheed Martin wins $153 million in defense contracts
• Golden Spike Resources plans name change, share consolidation and C$500K raise