Monness analyst Brian White has maintained their neutral stance on WDAY stock, giving a Hold rating on September 18.
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Brian White has given his Hold rating due to a combination of factors impacting Workday’s current market position. Despite the company’s recent efforts to innovate and expand, including the acquisition of Sana and partnerships with major players like Microsoft, there are concerns about the broader implications of the generative AI movement on the SaaS sector, which have negatively affected Workday’s stock performance this year.
Additionally, Workday’s financial targets suggest moderate growth, with a subscription revenue CAGR of 13-14% and an operating margin of approximately 35% by FY:28. While these targets indicate progress, they are slightly conservative compared to previous expectations. The company’s increased stock repurchase program and the introduction of new AI-driven products demonstrate a commitment to growth, yet the overall market sentiment and financial projections justify a cautious Hold rating.
White covers the Technology sector, focusing on stocks such as MongoDB, Snowflake, and Elastic. According to TipRanks, White has an average return of 17.9% and a 69.74% success rate on recommended stocks.
In another report released on September 18, D.A. Davidson also maintained a Hold rating on the stock with a $260.00 price target.