Stifel cuts Workiva stock price target to $120, maintains Buy

On Wednesday, Stifel analysts adjusted their outlook on Workiva (NYSE:WK), reducing the price target to $120 from the previous $130 while reaffirming a Buy rating on the company’s shares. With the stock currently trading at $86.43, analyst targets now range from $95 to $132, according to InvestingPro data. The adjustment comes amid ongoing global discussions around Environmental, Social, and Governance (ESG) reporting standards, particularly concerning the Corporate Sustainability Reporting Directive (CSRD) in Europe.

Stifel’s analysis suggests that Workiva is well-positioned to navigate the potential changes in ESG reporting requirements. The firm believes that Workiva’s focus on serving large organizations, which are expected to be less affected by any new reporting mandates, is a strategic advantage. This strategy appears to be working, as evidenced by the company’s impressive 76.72% gross profit margins and 16.18% revenue growth over the last twelve months. Furthermore, they emphasize that Workiva’s core financial reporting business, which is the main driver of the company’s revenue and bookings growth, is anticipated to remain stable.

Looking ahead, Stifel highlights Workiva’s positive outlook for the calendar year 2026 (CY26), which sets it apart from other vendors serving the Office of the CFO. The analysts are optimistic about Workiva’s subscription revenue growth, which is projected to stay around 20%. They also forecast a modest expansion in margins, attributing this to the anticipated benefits from increased salesforce productivity gains.

The valuation of Workiva’s stock, currently trading at approximately 5 times the estimated enterprise value to revenue for CY26 (5X CY26E EV/Revs), is deemed attractive by Stifel. This valuation, combined with the company’s robust growth prospects and expected margin improvements, underpins the firm’s decision to maintain a Buy rating despite the reduced price target.

In other recent news, Workiva reported its fourth-quarter 2024 earnings, surpassing revenue expectations with $200 million, compared to the forecasted $195.21 million. The company achieved a 22% increase in subscription revenue, driven by the acquisition of new clients and the expansion of existing accounts. This growth was notably supported by the demand for Workiva’s sustainability solutions. Truist Securities maintained a Buy rating with a $120 price target, highlighting Workiva’s strong performance and growth trajectory. Meanwhile, BMO Capital Markets adjusted their price target for Workiva to $108 but upheld an Outperform rating, citing concerns over regulatory changes in Europe that could impact the company. Citi raised its price target to $130, acknowledging Workiva’s robust fourth-quarter results and strong platform sales. The company’s guidance for 2025 includes a projected 20% growth in subscription revenue, despite uncertainties in the macroeconomic and regulatory landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.