CTAs keep buying Treasuries, gold longs face stop-loss risk: BofA
Investing.com - Cantor Fitzgerald initiated coverage on Workday (NASDAQ:WDAY), currently trading at $221.92 with a market cap of $59.2 billion, with an Overweight rating and a price target of $265.00 on Thursday. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The research firm expressed confidence in the enterprise software company despite acknowledging market concerns about Workday’s slowing growth, uncertain macroeconomic conditions, and potential AI disruption to the company’s seat-based business model. Recent InvestingPro data shows the company achieved nearly 15% revenue growth in the last twelve months, with analysts expecting continued growth this year.
Cantor Fitzgerald described Workday as a "high-quality asset with a strong management team, entrenched competitive position in the enterprise, expanding growth vectors, and latent margin potential."
The firm noted that Workday stock is currently trading near its all-time low earnings per share and free cash flow multiples, which it considers an attractive entry point for investors.
Cantor Fitzgerald concluded that this valuation presents "a positively skewed risk/reward ratio" for potential investors in the enterprise software provider.
In other recent news, Workday has announced the acquisition of Flowise, a low-code platform aimed at enhancing the company’s AI agent-building capabilities. This acquisition is intended to provide Workday customers and partners with tools to develop AI agents for human resources and finance functions more efficiently. Meanwhile, ahead of Workday’s upcoming earnings report, analysts have shared varied insights. Guggenheim reiterated a Neutral rating, highlighting the challenging business environment Workday operates in, while UBS also maintained a Neutral rating but lowered its price target to $250, citing concerns over human capital management demand.
Evercore ISI, on the other hand, maintained an Outperform rating and expressed expectations for Workday to slightly exceed its subscription revenue guidance of $2.16 billion, indicating 13.5% growth. The firm does not foresee major changes to the company’s fiscal year 2026 subscription revenue growth forecast. Additionally, Workday’s annual conference, Workday Rising, is set to feature notable speakers like Brené Brown and performances by Duran Duran. The event will include discussions on enterprise transformations and the use of Workday’s AI platform, with participation from Microsoft and Instacart representatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.