Five things to watch in markets in the week ahead
Investing.com - DA Davidson raised its price target on Workday (NASDAQ:WDAY) to $260.00 from $225.00 on Thursday, while maintaining a Neutral rating on the enterprise software company. The software giant, currently valued at $62.5 billion, has demonstrated strong revenue growth of ~14% over the last twelve months. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $225 to $340.
The price target increase follows DA Davidson’s virtual attendance at Workday’s 2025 Analyst Day, where the company made new product announcements and financial disclosures related to its artificial intelligence initiatives.
The research firm noted it has become "incrementally positive" toward Workday’s opportunity to benefit from Agentic AI adoption, as the company is making it easier for customers to implement new AI agents across their enterprises.
DA Davidson highlighted that Workday’s AI Agent revenue is growing quickly, though it currently represents a small portion of the company’s overall revenue base.
The firm maintained its Neutral stance on Workday stock, noting that an expected 2026 release date for certain AI capabilities limits upside to near-term financial projections, and that current growth expectations appear adequately priced into the stock.
In other recent news, Workday has been the focus of several analyst assessments and strategic developments. RBC Capital reiterated its Outperform rating on Workday with a price target of $340, citing increased confidence in the company’s growth strategy following the annual Rising customer conference and analyst day. Similarly, BMO Capital maintained its Outperform rating with a $285 target, highlighting positive developments such as Workday’s AI-centric innovations and the acquisition of Sana. Cantor Fitzgerald also expressed confidence in Workday’s growth potential, reiterating an Overweight rating and a $265 price target, emphasizing the company’s competitive advantage in enterprise AI adoption. Meanwhile, Stifel maintained its Hold rating with a $255 price target, following discussions about AI integration and platform adoption. These recent developments underscore the varied perspectives from investment firms on Workday’s strategic direction and growth opportunities.
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