Goldman Sachs analyst Kash Rangan raised the firm’s price target on Workday (WDAY) to $310 from $300 and keeps a Buy rating on the shares. The company announced the elimination of 1,750 positions, or 8.5% of its workforce, and stated that it expects its Q4 results to be in-line or above current guidance, the analyst tells investors in a research note. The firm believes the restructuring plan sets Workday up to “solidly outperform” its margin target and estimates the rightsizing of expenses could save as much as $100M per quarter.
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Read More on WDAY:
- Workday announcement reads as a positive signal for margins, says Morgan Stanley
- Workday workforce reduction could deliver more upside after RIF, says Jefferies
- Workday Stock Jumps on Layoff Plans
- Workday Announces Major Restructuring and Growth Strategy
- Workday to cut about 1,750 jobs, or 8.5% of workforce in restructuring
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