Guggenheim upgrades Workday to Neutral, sees challenges priced in after pullback

Guggenheim analyst John DiFucci upgraded Workday to Neutral from Sell with a $142 price target. Amid the "recent market turmoil," shares have declined 23% and are now below his current price target and even below his original target from August 11, DiFucci tells investors. While he continues to believe that it will be challenging for Workday to hit its long-term targets of sustainable 20%-plus subscription revenue growth and $10B of total organic revenue by FY26, he views shares as fairly valued at current levels with challenges mostly priced in for what he calls "a category leader."