Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $265.00 price target on Workday (NASDAQ:WDAY) following the company’s annual Rising customer conference and Analyst Day in San Francisco. According to InvestingPro data, analyst targets for Workday range from $225 to $340, with the stock currently trading at $219.01.
The firm expressed confidence in Workday’s growth outlook despite market concerns about AI disrupting legacy seat-based SaaS models. Cantor Fitzgerald highlighted that enterprise AI adoption increasingly depends on data gravity to power adopted models, giving Workday a competitive advantage with its key HR and Finance data. InvestingPro analysis shows strong fundamentals supporting this view, with revenue growing at ~14% and maintaining a healthy 75.6% gross margin.
This advantage is expected to accelerate adoption of WDAY Agents, while the newly announced Flex Credits monetization strategy could drive incremental growth in FY27 and beyond.
The research firm acknowledged this growth would likely build slowly over time but believes it counterbalances recent negative investor sentiment around the stock.
Cantor Fitzgerald maintained its positive outlook on Workday shares, citing the company’s potential to leverage its data advantage in the evolving AI landscape.
In other recent news, Workday has been the focus of several analyst updates following its recent events and announcements. BMO Capital maintained its Outperform rating with a $285 price target, highlighting Workday’s AI-centric innovations and the acquisition of Sana as constructive developments. Meanwhile, TD Cowen adjusted its price target from $310 to $290, maintaining a Buy rating after the company revised its medium-term growth expectations. Needham reiterated a Buy rating with a $300 price target, expressing confidence in Workday’s updated agentic strategy despite a slight reduction in near-term subscription revenue growth guidance. Bernstein also reiterated an Outperform rating with a $304 price target, emphasizing Workday’s growth strategies and market potential. Additionally, Evercore ISI raised its price target to $300 from $275, citing strategic platform evolution and acquisitions aimed at sustaining growth in an AI-focused environment. These updates reflect a broad consensus on Workday’s strategic direction and growth prospects amidst its latest initiatives.
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