JMP reiterates Workday stock rating at Market Outperform with $315 target

Investing.com - JMP Securities has reiterated its Market Outperform rating and $315.00 price target on Workday (NASDAQ:WDAY) following the analyst firm’s attendance at Workday Rising and Financial Analyst Day in San Francisco. According to InvestingPro data, analyst targets range from $220 to $340, with the company currently trading at a P/E ratio of 101.5x.

The firm noted approximately 8,000 people attended the keynote presentation, while about 110 participants were present at the Financial Analyst Day event.

JMP highlighted comments from Workday CEO Carl Eschenbach, who stated that "the narrative that AI is eating software is completely overblown and completely overhyped with respect to Workday."

Following these events and executive comments, Workday shares rose 6% in after-hours trading, according to JMP.

The stock had previously fallen 15% year-to-date, underperforming compared to both the S&P 500 and Russell 3000 indices, which have each gained 12% during the same period.

In other recent news, Workday’s latest earnings report has garnered attention from several analyst firms. TD Cowen reiterated its Buy rating on Workday, highlighting the company’s return to historical contracted remaining performance obligation levels after a softer first quarter. RBC Capital also maintained its Outperform rating with a $340 price target, noting Workday’s modest beat in its second-quarter earnings. However, Piper Sandler adjusted its price target down to $220, citing a mixed outlook despite results that were "better-than-feared."

Meanwhile, Needham continues to hold a Buy rating with a $300 price target, though it anticipates a possible reduction in Workday’s fiscal year 2027 subscription revenue growth target from 15%+ to around 13%. Piper Sandler upgraded Workday from Underweight to Neutral, raising its price target to $235, following observations at the Workday Rising conference that highlighted the company’s strategic investments in artificial intelligence. These recent developments reflect a diverse range of perspectives on Workday’s financial performance and strategic direction.

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