Workday price target raised to $260 from $242 at Loop Capital

Loop Capital raised the firm’s price target on Workday (WDAY) to $260 from $242 and keeps a Hold rating on the shares as part of a broader research note on Software. The firm’s most recent checks with large global system integrator contacts indicate somewhat of a lackluster start to the beginning of the year despite positive optimism going into the year, and so far, there has not been any meaningful pick-up in the overall pace of new large-scale IT initiatives, leading to a sizable bench of unstaffed consultants, the analyst tells investors in a research note. Loop adds that the company’s sizable planned reduction in the workforce is the result of the continuation of a challenging demand environment, also noting that Workday’s cost structure is more closely aligned with its current growth rate, with expectation that the company will show a sizable margin expansion going forward.