Workday focus on ‘efficient growth is prudent,’ says Jefferies

Jefferies analyst Brent Thill maintains a Buy rating on Workday with a $235 price target after the company announced a 3% workforce reduction. Workday’s focus on "efficient growth is prudent" given the current macro environment, the analyst tells investors in a research note. The analyst says management emphasized that it expects to grow headcount in fiscal 2024. Jefferies believes Workday is well positioned to deliver on its medium terms goals of 20% subscriber revenue growth with 25% bottom line margins.