Workday initiated with an Outperform at MoffettNathanson

MoffettNathanson analyst Jackson Ader initiated coverage of Workday (WDAY) with an Outperform rating and $245 price target. On the Human Capital Management, or HCM space broadly, Ader argues that strength in 2022 may "portend later cycle impact in 2023" after the group "held up remarkably well relative to the rest of software in 2022 from both a trading and a fundamental perspective." On specific names, Ader argues that "at the poles," current multiples "imply too much pain" for Workday and "too much optimism" for Paycom (PAYC), which he started with an Underperform rating.