Workday (WDAY) PT Lowered to $255 at UBS
UBS analyst Karl Keirstead lowered the price target on Workday (NASDAQ: WDAY) to $255.00 (from $280.00) while maintaining a Neutral rating.
The analyst comments "Workday posted a very disappointing 1Q/Apr print, marked by the disclosure of a worsening macro (greater deal scrutiny and slower-than-expected customer headcount growth) that is weighing on cRPO growth (1Q/Apr merely in-line and 2Q/Jul cRPO guide of 15-16% well short of the 17-18% bogey) and leading Workday to trim its FY25 sub revs growth guide by $50m or 1%. Frankly, the cRPO growth deceleration is so severe (20%+ throughout FY24 to potentially <15% in 2HF25) that we wonder whether a modest trim to the full year revs guide was enough. We remain Neutral-rated."