Deutsche Bank upgrades Workday to Buy, notes AI Halo effect

Deutsche Bank upgraded Workday (WDAY) to Buy from Hold with a price target of $300, up from $265, in a research note titled ‘Rotating Preferences in Back Office Apps.’ The firm said it remains constructive on the secular growth opportunity in Back Office applications, but sees it being challenged this year relative to other areas of software. Deutsche Bank added that, outside of forced cloud migrations, it expects budget to gravitate to platform vendors that are benefitting from an AI Halo effect, and as a result sees limited upside to estimates across back office versus front office apps.