Workday (WDAY) Stock Gains Analyst Confidence, Long-Term Story Seen as Attractive

Workday, Inc. (NASDAQ:WDAY) is one of the AI Stocks Analysts Are Tracking Closely. On August 22, Cantor Fitzgerald reiterated an Overweight rating on the stock with a $265.00 price target following the company’s “slightly better-than-expected” quarterly results.

The firm highlighted several positive indictors from the earnings print. However, the company has only raised its full-year revenue guidance to account for its Paradox acquisition instead of accounting for the second-quarter performance beat. This implies that management is conservative about its second-half performance.

“WDAY reported slightly better-than-expected results with revenue, op margin and EPS all slightly above VA consensus, but calc. billings coming in slightly below. Importantly, cRPO growth was 16.4% vs. 15–16% guide, with early renewals from customers adding AI and other next-gen features cited as the key driver. Looking ahead, F2Q results give us optimism for sustained momentum into F2H, though investor concerns regarding the macro/AI headwinds to broader SaaS growth now essentially hinge on 2H acceleration and improved execution."

"While worst case scenarios are likely taken off the table, mgmt. only raised FY topline guide to account for its Paradox acquisition (and not 2Q beat), implying mix of 2H conservatism and uncertainty, which will likely continue to pressure the narrative in the short term. We remain Overweight rated as we believe the long-term concerns are overblown, leaving an attractive risk-reward scenario that skews to the upside.”

Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.

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