Jefferies Cuts Price Target on Workday (WDAY) to $83 Following 2Q EPS Beat

Jefferies maintained a Hold rating on Workday (NYSE: WDAY), and cut the price target to $83.00 (from $92.00), following the company's 2Q16 earnings report. Non-GAAP EPS of $0.02 on total revenue of $282.7M and subscription of $223.7M exceeded Street estimates of ($0.06), $274M, and $219M, respectively.

Analyst John DiFucci commented, "8.3x EV/Revs leaves little room for any confusion, which came in the form of seemingly disappointing guidance. 2Q results exceeded expectations, particularly with New Subscription ACV +35% y/y. However, disappointing guidance is attributed to shorter billings duration and greater F4Q seasonality, both which we see stemming from heightened competition. Longer term, we believe WDAY’s prospects remain sound, while we respect the NT volatility."

For an analyst ratings summary and ratings history on Workday click here. For more ratings news on Workday click here.

Shares of Workday closed at $72.40 yesterday.

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