Workday analyst day likely a positive catalyst for shares, says Morgan Stanley

Ahead of Workday hosting its annual analyst day on Wednesday, September 27, the first for new Co-CEO Carl Eschenbach and new CFO Zane Rowe, Morgan Stanley sees “multiple puts and takes.” However, the firm thinks the company is likely to raise the operating margin target from about 25% to high-20% and contends that revised margin estimates, and as a result higher EPS estimates, will likely combine on a net basis to make the analyst day “a positive catalyst/event.” Morgan Stanley has an Overweight rating and $260 price target on Workday shares.