Oppenheimer Believes Workday (NYSE: WDAY) Still Has Room to Grow

By Austin Angelo

In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on Workday (NYSE: WDAY), with a price target of $105. The company’s shares closed yesterday at $99.42, close to its 52-week high of $100.40.

Schwartz commented:

“We remain long-term positive on Workday for these reasons: 1) Multiple partners report the April quarter closed well with increases to average deal size. 2) Long- term growth trends for Workday remain favorable from its HCM dominance and differentiated technology architecture. 3) Operating margin growth provides a path to expand the investor base. On balance, Workday’s valuation has risen in F1Q even as expectations of financials traction in the enterprise market have faded from a lack of platform wins. For the shares to keep working, investors probably need something to look forward to on the financials opportunity (e.g., F500 wins, segment transparency, products). Bottom Line: We expect F1Q billings growth to exceed the 23% consensus estimate while noting the shares’ healthy current valuation.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 21.9% and a 76.4% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Ultimate Software, and Callidus Software.

Currently, the analyst consensus on Workday is Moderate Buy and the average price target is $94.93, representing a -4.5% downside.

In a report issued on May 15, Piper Jaffray also maintained a Buy rating on the stock with a $110 price target.

The company has a one year high of $100.40 and a one year low of $65.79. Currently, Workday has an average volume of 1.52M.

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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.