Workday price target raised to $180 from $160 at Loop Capital

Loop Capital analyst Yun Kim raised the firm’s price target on Workday to $180 from $160 and keeps a Hold rating on the shares. The company’s Q4 results were "solid" with 24-month subscription backlog growth of 21%, which is consistent with Q3 and better than its guidance of 19%, the analyst tells investors in a research note. The firm added that the overall sales environment for Workday has not changed much over the past two quarters, and it believes that the management’s FY24 subscription revenue guidance remains more conservative than a quarter ago. Workday remains "well positioned" to benefit from a large-scale displacement of the HCM platform that is currently ongoing in North America and Europe, even though the pace of the large HCM displacement cycle in the enterprise market could slow in today’s increasingly challenging IT spending environment, Loop Capital stated.