Workday Coverage Initiated at Burke & Quick (WDAY)
Investment analysts at Burke & Quick initiated coverage on shares of Workday (NASDAQ:WDAY) in a note issued to investors on Friday. The firm set an “outperform” rating and a $93.00 price target on the stock. Burke & Quick’s target price would indicate a potential upside of 14.22% from the company’s current price.
The analysts wrote, “We are initiating coverage of Workday, Inc. with an Outperform rating and $93.00 price target. We are establishing our 12-month price target based on a P/S ratio of 16.0x our out-year sales per share estimate of $5.80, implying 16% upside to yesterday’s close of $79.83. Although WDAY shares are trading at a 143% premium to its peer group (i.e., trading at an out-year PS ratio of 13.5x versus the Software-as-a-Service (SaaS) peer group average of 5.6x) we believe a significant premium is warranted given the large market opportunity and management’s demonstrated ability to execute. On an absolute basis, our long-term DCF valuation yields a current $98.25 fair value.”
Several other analysts have also recently commented on the stock. Analysts at Wedbush raised their price target on shares of Workday from $86.00 to $96.00 in a research note on Wednesday, May 28th. Separately, analysts at Susquehanna cut their price target on shares of Workday from $110.00 to $100.00 in a research note on Wednesday, May 28th. Finally, analysts at Goldman Sachs raised their price target on shares of Workday from $79.00 to $90.00 in a research note on Wednesday, May 28th. Twelve research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. Workday currently has an average rating of “Hold” and an average price target of $97.31.
Workday (NASDAQ:WDAY) opened at 81.42 on Friday. Workday has a 52 week low of $64.21 and a 52 week high of $116.47. The stock has a 50-day moving average of $83.57 and a 200-day moving average of $86.32. The company’s market cap is $15.063 billion.
Workday (NASDAQ:WDAY) last issued its quarterly earnings data on Tuesday, May 27th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.15) by $0.02. The company had revenue of $159.70 million for the quarter, compared to the consensus estimate of $152.42 million. During the same quarter in the previous year, the company posted ($0.15) earnings per share. The company’s revenue for the quarter was up 74.3% on a year-over-year basis. On average, analysts predict that Workday will post $-0.54 earnings per share for the current fiscal year.
Workday, Inc, is a provider of enterprise cloud-based applications for human capital management (NASDAQ:WDAY), payroll, financial management, time tracking, procurement and employee expense management.
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