Workday price target raised to $280 from $245 at Loop Capital

Loop Capital raised the firm’s price target on Workday to $280 from $245 but keeps a Hold rating on the shares after its Q4 earnings beat but maintained subscription revenue guidance. The company benefited from early renewals this past year, which typically involve inflation-adjusted price increases, though Q4 marks another quarter of decelerating business trends, the analyst tells investors in a research note. Given the expectation that early renewals will continue going forward well into next FY and also the compounding effect of early renewals, Loop continues to expect subscription revenue growth to lag behind its subscription backlog growth, the firm added.