BMO Capital analyst Daniel Jester has maintained their bullish stance on WDAY stock, giving a Buy rating today.
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Daniel Jester has given his Buy rating due to a combination of factors that highlight Workday’s potential for growth and resilience amidst macroeconomic uncertainties. The company’s strategic investments in its go-to-market strategies over recent years are showing positive results, with improved win rates and a strong AI strategy that is gaining traction. This positions Workday well for margin improvement, which is expected to accelerate, offering an attractive risk/reward profile with shares trading at a reasonable valuation relative to future free cash flow.
Despite some mixed signals in the human capital management bookings environment and uncertainties in certain verticals like government and higher education, Workday’s momentum in customer platform deals remains strong. The company’s fiscal first quarter results are anticipated to show continued EBIT growth and margin expansion, with subscription revenue expected to slightly exceed forecasts. Additionally, the anticipated modest growth in the latter half of the fiscal year, supported by factors like government contracts and Workday wellness, further supports the Buy rating as the company navigates its guidance updates.
According to TipRanks, Jester is a 4-star analyst with an average return of 7.5% and a 57.56% success rate. Jester covers the Technology sector, focusing on stocks such as Intuit, Workday, and Vertex.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $320.00 price target.