Workiva selloff yesterday a buying opportunity, says Citi

Citi believes reports of increased pressure on European Union regulators to dial back environmental, social, and governance reporting regulations, with France preparing a proposal to limit the scope of regulatory directives that are driving Workiva’s (WK) ESG reporting product, created a buying opportunity for the shares. There has been no formal change to Corporate Sustainability Reporting Directive requirements, with the news indicating the preparation of a proposal likely focusing on smaller businesses that fall outside of Workiva’s enterprise end market, the analyst tells investors in a research note. Citi views the stock selloff “as outsized,” and believes it significantly improves the setup into the Q4 results. The firm keeps a Buy rating on Workiva with a $128 price target