Several Wall Street firms raised their price targets on Workday (NASDAQ:WDAY) ahead of the company’s Q2/24 results, scheduled on Aug 24.
Oppenheimer raised its price target on Workday to $255.00 from $240.00, while maintaining an Outperform rating.
“While investor expectations for WDAY shares have increased after a significant move up in the company valuation recently, we expect positive reported results for F2Q with upside to the consensus subscription backlog estimate and higher profit Margins,” mentioned Oppenheimer.
According to the firm, its research shows strong deal activity, momentum, rising engagement levels, and defensibility in Workday's solutions. Negatively, backlog growth in Q2 is expected to be challenged due to tough year-over-year comparisons.
The firm believes that Workday's Generative AI positioning is undervalued by investors. However, transparency on AI opportunities next month at the Investor Day/Rising conference could change this.
Meanwhile, BofA Securities raised its price target on the company to $275.00 from $250.00 while maintaining a Buy rating.
The bank engaged in discussions with nearly a dozen key Workday SI partners to gather insights about Q2 deal activity and pipelines. The feedback was generally positive, indicating results that were in line with or exceeded expectations, reflecting a slight improvement from Q1.