Workday price target lowered to $310 from $330 at BofA

BofA lowered the firm’s price target on Workday to $310 from $330 and keeps a Buy rating on the shares. After having spoken to nearly a dozen partners to gauge Q1 activity and trends, the analyst indicates that the feedback suggests stable, healthy deal activity, with most citing better or in line results. Guidance for FY25 margin of 24.5% is only 50 basis points below the FY27 25% target, notes the firm, which believes that upside to the “conservative” FY27 margin target is likely to provide a catalyst. However, the firm trims its price target for peer multiple compression.