Workday (WDAY) Focused Towards AI Strategy Acceleration

Workday Incorporated (NASDAQ:WDAY) is one of the 12 oversold software stocks to invest in.

On February 10, the price target on Workday Incorporated (NASDAQ:WDAY) was reduced from $285 to $230 by BTIG analyst Allan Verkhovski. He maintained a Buy rating on the stock, following the appointment of co-founder Aneel Bhusri as CEO, replacing Carl Eschenbach.

Verkhovski highlighted that Workday’s accelerated AI strategy could require increased investments and viewed the leadership transition favorably. He remains confident in Bhusri’s ability to guide the company through the evolving AI landscape.

On February 9, Oppenheimer analyst Brian Schwartz also maintained an Outperform rating on Workday Incorporated (NASDAQ:WDAY), following Carl Eschenbach’s departure as the CEO, with Aneel Bhusri stepping in as his successor. The analyst views Bhusri as well-positioned to guide the company through the software industry’s transition towards AI technologies.

He believes that the timing of this announcement is critical given the company’s relative underperformance in revenue and stock growth, along with the AI product narrative. Schwartz also cautioned that such transitions inherently introduce uncertainty and possible strategic shifts.

Workday Incorporated (NASDAQ:WDAY) delivers enterprise cloud applications for financial management, human capital management, and data analytics. Its financial management capabilities include financial processing, consolidation, internal control, audits, and analytics. The company facilitates end-to-end human capital management functions that include hiring, onboarding, training, and payments for employees.

While we acknowledge the potential of WDAY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.