Workday, Inc. (NASDAQ:WDAY) is one of the AI Stocks Making Big Moves on Wall Street. On September 17, BofA Securities Analyst Brad Sills reiterated a Buy rating and $265.00 price target on the stock. The rating affirmation follows Workday’s analyst day at its Workday Rising user conference.
The firm highlighted Workday’s acquisition of Sana for $1.1 billion, its new partnership with Microsoft to import agents built on Azure AI Foundry into the Illuminate agent platform, and a new flex credit pricing model for Illuminate, Workday’s proprietary, next-generation AI engine and enterprise AI platform, which will allow it to capture consumption-based revenue.
BofA is positive about Workday’s updated growth and margin targets because the company set a more achievable growth target of 12% to 15% (down from mid-teens). It also demonstrated a better operating leverage with a 35% FY28 margin target (up from 30%+ in FY27), as well as committed to lowering stock-based consumption to 13%-14% of revenue in FY28, down from 15%.
The firm believes these changes will lead to fast-paced, higher quality free cash flow, with the firm modeling a two-year compound annual growth rate of 23% in FY28, up from 20% in FY27.
Workday, Inc. (NASDAQ:WDAY) provides enterprise cloud applications.
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