Workday price target raised to $220 from $205 at Oppenheimer

Oppenheimer analyst Ray McDonough raised the firm’s price target on Workday to $220 from $205 and keeps an Outperform rating on the shares. The firm’s Q4 research mosaic reveals solid trends for Workday. Oppenheimer detected strong business activity for FINS and reversals in the open total and sales positions trendlines that signal strengthening pipeline momentum and improving cost discipline balanced by mixed HCM checks. The firm believes Workday has one of the best fundamentals set-up in its coverage universe this year, and sees a durable growth and cash-flow acceleration story strengthening and providing a good path to expand the investor base given a dearth elsewhere of strong recurring revenue growers with improving profitable operating margin and accelerating cash flow names in large cap software.