Goldman Sachs analyst Adam Hotchkiss maintained a Buy rating on Workiva (WK – Research Report) today and set a price target of $132.00.
Adam Hotchkiss has given his Buy rating due to a combination of factors that highlight Workiva’s strong performance and potential for growth. The company reported fourth-quarter revenue that exceeded expectations by 2.4% and provided guidance for fiscal year 2025 revenue that is 2% above the consensus at the midpoint. This performance is attributed to Workiva’s success in securing large, multi-solution platform deals, which include sustainability and financial reporting solutions.
Despite a challenging environment for back-office software companies, Workiva’s investment in broadening its integrated reporting functions is paying off, as evidenced by the accelerating subscription revenue growth projected for 2025. Furthermore, the company is benefiting from the voluntary adoption of sustainability standards and regulatory-related strategies by large multinationals, leading to significant deal wins. Although the profitability guidance for FY25 is slightly below expectations, the long-term margin targets remain promising, reinforcing confidence in Workiva’s potential to achieve a Rule-of-40 business model over the next three years.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $120.00 price target.