Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - KeyBanc has maintained its Overweight rating and $285.00 price target on Workday (NASDAQ:WDAY) following the company’s Financial Analyst Day in San Francisco. According to InvestingPro data, the company currently trades at a high earnings multiple with a P/E ratio of 101.5, while maintaining strong financial health with a current ratio of 2.1.
The investment firm noted that Workday provided an updated financial framework for fiscal year 2028, targeting 12-15% subscription revenue compound annual growth rate (CAGR) and approximately 35% operating margin, which KeyBanc views as largely in line with expectations.
Workday also provided what KeyBanc described as "soft" subscription guidance of 13% for fiscal year 2027, which is technically lower than previous projections but may be viewed as conservative by many investors.
In a significant development, activist investor Elliott Management disclosed a stake worth over $2 billion in Workday, apparently aligning itself with the company’s management team.
KeyBanc indicated it has become more constructive on Workday’s growth vectors following the analyst day presentation, supporting its decision to maintain the Overweight rating on the stock. For deeper insights into Workday’s valuation and growth prospects, InvestingPro subscribers can access 12 additional ProTips and a comprehensive Pro Research Report, offering expert analysis of the company’s financial health and market position.
In other recent news, Workday’s latest earnings report has garnered attention from several analyst firms. TD Cowen reiterated its Buy rating with a $310 price target, highlighting a return to historical contracted remaining performance obligation levels after a previous soft quarter. RBC Capital maintained its Outperform rating with a $340 price target, noting a modest second-quarter earnings beat, although the company only reiterated its subscription revenue guidance excluding Paradox. Meanwhile, Needham kept its Buy rating and $300 price target, anticipating a possible reduction in Workday’s fiscal year 2027 subscription revenue growth target due to recent performance.
Piper Sandler upgraded Workday from Underweight to Neutral, increasing its price target to $235, following observations of Workday’s strategic initiatives in artificial intelligence. JMP Securities also reiterated its Market Outperform rating with a $315 price target after attending the Workday Rising and Financial Analyst Day events. These developments reflect a range of analyst perspectives on Workday’s current performance and strategic direction.
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