Analyst Brent Thill of Jefferies maintained a Buy rating on Workday (WDAY – Research Report), retaining the price target of $350.00.
Brent Thill has given his Buy rating due to a combination of factors that suggest potential for improvement in Workday’s stock performance. Despite Workday’s recent underperformance compared to its peers, Thill believes this is largely due to overly optimistic growth expectations rather than fundamental issues with the business model. By adjusting growth targets to more realistic levels and focusing on margin expansion, Workday can create a more favorable market perception.
Thill highlights that Workday’s current valuation is attractive, trading at a significant discount compared to similar companies. He also notes positive feedback from channel partners regarding recent management changes, which, although requiring time to show results, indicate a strategic direction that could enhance margins. These elements combined suggest that aligning growth expectations with market realities and improving margins could lead to a positive shift in investor sentiment and stock performance.
In another report released on February 21, Oppenheimer also reiterated a Buy rating on the stock with a $300.00 price target.