UBS is cutting its price target on Workday, Inc. (NYSE: WDAY) from $121 down to $111 following Q1 results.

Analyst Brent Thill noted a beat-and-raise quarter from Workday, much like other SaaS vendors. Customer and deal metrics continue to improve, evidencing vast unmet demand that is filled as WDAY rolls out new functionality & products. In higher education sector, the Student pdt, which will not be complete until end of FY17/CY16, is driving clients to buy the full HCM/Fin’ls suite today. With ORCL & SAP still far behind in the Cloud, we expect WDAY to extend its lead and capture a large share of the $50Bn+ TAM from <$1Bn today, the analyst said.

Thill's lover price target is based on EV/S 19x (was 23x), using a 210% premium (was 200% premium) to SaaS grp median EV/S 6.1x (was 7.6x), and applied to UBSe revs in 5-8 qtrs (raised & rolled forward). Lower PT reflects recent multiple compression in SaaS comp group. In our view WDAY remains a core holding for Cloud/SaaS.

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 $82.13 yesterday.