Workday price target lowered to $245 from $260 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Workday to $245 from $260 and keeps an Overweight rating on the shares. Workday’s new management duo of co-CEO Carl Eschenbach and CFO Zane Rowe “showed plenty of excitement at their first analyst day,” though there was a “disconnect” between management’s excitement around a broader and deeper solution portfolio and three-year targets that no longer show 20%-plus top-line growth with minimal margin expansion, the analyst tells investors. This disconnect likely puts the stock “in the penalty box” while the company is proving out the “conservatism of those targets,” the analyst added.