Workday (WDAY) PT Raised to $340 at BofA Securities

BofA Securities analyst Brad Sills raised the price target on Workday (NASDAQ: WDAY) to $340.00 (from $285.00) while maintaining a Buy rating.

The analyst comments "In summary, Q4 results should provide some comfort that topline growth has bottomed out, and that mid-teens is the right durable growth rate to assign to the business. Coupled with a disciplined operating model currently in place, we are modeled for a solid 23% 2-year FCF CAGR. We raise our PO to $340 from $285 for better visibility on the durable topline growth rate. Our new PO represents 26x CY26e FCF (versus 22x prior), or 1.1x adjusted for 23% 2-year CAGR, a discount to the software GARP group at 1.4x. We believe Workday has a long runway for growth, led by cross sell of a suite of HCM offerings and share gains in the mid-market financials industry."

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