Workday Receives a Buy from Drexel Hamilton

By Ryan Adsit

In a report released today, Brian White from Drexel Hamilton reiterated a Buy rating on Workday (NYSE: WDAY), with a price target of $114. The company’s shares closed yesterday at $99.31, close to its 52-week high of $101.33.

White said:

“We believe Workday will slightly exceed our 1Q:FY18 revenue estimate of $467.1 million (Street is at $468.1 million) and meet our EPS estimate of $0.17 (Street is at $0.16). Our 1Q:FY18 revenue forecast calls for 7% QoQ growth and below the four-year average of up 11% for past April quarters. Workday’s 1Q:FY18 outlook calls for sales of $467 million to $468 million. For 1Q:FY18, we are modeling Subscription Services revenue of $392.5 million (up 40% YoY) and Professional Services sales of $74.6 million (up 14%).”

According to TipRanks.com, White is a 5-star analyst with an average return of 10.7% and a 64.0% success rate. White covers the Technology sector, focusing on stocks such as Juniper Networks, Salesforce.com, and Amphenol Corp.

Currently, the analyst consensus on Workday is Moderate Buy and the average price target is $96.17, representing a -3.2% downside.

In a report issued on May 23, RBC Capital also reiterated a Buy rating on the stock with a $105 price target.

The company has a one year high of $101.33 and a one year low of $65.79. Currently, Workday has an average volume of 1.45M.

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Workday, Inc. engages in the provision of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management and analytics applications designed for the world’s largest companies, educational institutions, and government agencies. The company was founded by David A. Duffield and Aneel Bhusri in March 2005 and is headquartered in Pleasanton, CA.