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Investing.com - Needham has reiterated its Buy rating and $300.00 price target on Workday (NASDAQ:WDAY) following the company’s annual Financial Analyst Day and Rising customer conference. According to InvestingPro data, analysts’ targets for the $58.5B market cap company range from $225 to $340, with the stock currently trading at $219.01.
The firm expressed increased confidence in Workday’s updated agentic strategy despite the company lowering its near-term subscription revenue growth guidance from 15% to approximately 13% for FY27.
Needham expects Workday shares to perform modestly better based on updated margin guidance and projected 20% annual free cash flow per share growth through FY28.
The research firm highlighted Workday Build and Data Cloud announcements as significant platform strategy changes that support the company’s agentic initiatives, rather than focusing solely on product announcements and the Sana acquisition.
Needham also noted that Workday’s new flex credit model could drive additional AI adoption through its pay-as-you-go approach.
In other recent news, Workday has been the focus of several analyst firms, highlighting various developments. BofA Securities reiterated its Buy rating with a $265 price target, emphasizing Workday’s acquisition of Sana for $1.1 billion and a partnership with Microsoft to enhance its Illuminate agent platform. Evercore ISI raised its price target for Workday to $300 from $275, citing strategic acquisitions and platform evolution aimed at sustaining growth in an AI-focused environment. Bernstein SocGen Group maintained its Outperform rating with a $304 price target, pointing to Workday’s innovation and execution strategies. KeyBanc kept its Overweight rating and a $285 price target, noting Workday’s updated financial framework with a subscription revenue growth target and operating margin expectations. JMP Securities also reiterated its Market Outperform rating, setting a $315 price target and noting strong attendance at recent company events. These developments reflect a positive outlook from multiple analysts on Workday’s growth strategies and financial targets.
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