Workday price target raised to $235 from $210 at Loop Capital

Loop Capital raised the firm’s price target on Workday to $235 from $210 and keeps a Hold rating on the shares. The company’s Q2 results were “solid” with a 24-month subscription backlog growth of 23% – largely consistent with early renewal-adjusted growth of 22% in Q1, the analyst tells investors in a research note. Loop adds that it continues to appreciate the company’s resilient business driven by diverse revenue streams from a diverse set of products and also a diverse set of customers, but also warns that the pace of the large HCM displacement cycle in the enterprise market remains pressured in today’s increasingly challenging IT spending environment.