In a report released today, Derrick Wood from TD Cowen maintained a Buy rating on Workday (WDAY – Research Report), with a price target of $320.00.
Derrick Wood has given his Buy rating due to a combination of factors including Workday’s impressive financial performance and strategic growth initiatives. The company exceeded expectations with a 15.2% growth in its current remaining performance obligations (cRPO), surpassing the guidance range, and achieved an operating margin that was 140 basis points above forecasts.
Additionally, Workday’s focus on key growth areas such as financial management solutions, platform expansion, and artificial intelligence adoption has shown promising results. The strong performance in its partner channels and the progress in AI integration are seen as positive indicators for future growth. Despite some challenges in international markets, the company’s valuation remains attractive, with a path to achieving over 30% free cash flow margins, supporting the Buy recommendation.
According to TipRanks, Wood is a top 100 analyst with an average return of 16.8% and a 63.84% success rate. Wood covers the Technology sector, focusing on stocks such as Salesforce, Workday, and ServiceNow.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $315.00 price target.