Wells Fargo Starts Workday (WDAY) at Outperform

November 6, 2012 7:22 AM EST
Get Alerts WDAY Hot Sheet
Price: $240.40 +1.04%

Rating Summary:
    33 Buy, 24 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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Wells Fargo initiates coverage on Workday (NYSE: WDAY) with a Outperform rating and $60-$62 valuation range.

The firm comments, "Our thesis on Workday is that in the next five years, Workday will be a significantly larger business than it is today. Every decade or so business applications need to be upgraded to take advantage of programming model advancements, technological platform changes, functional process needs, and diverse data requirements. With most enterprise resource planning (ERP) applications nearing the end of their useful life, we believe the current $40 billion HR and financial management application software market is on the cusp of a major replacement and expansion cycle. Workday’s cloud delivery model, modern architecture, and growing product portfolio put the company in an enviable position to take advantage of this massive opportunity, in our view. We believe Workday has many competitive technical and business model advantages that should enable Workday to annually increase revenue by 50%+ over the next three years. We are forecasting revenue to grow 62% in FY2014 on top of the estimated 86% in FY2013."


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 $48.52 yesterday.


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