UPDATE: JP Morgan Initiates Workday at Neutral on Valuation
JP Morgan initiated coverage on Workday (NYSE: WDAY) with a Neutral rating and a $54 price target.
JP Morgan commented, "While we believe WDAY may become one of the most important software names of this generation by fundamentally changing how enterprises manage their HR and financial records, the company's cash flow profile suggests the stock is fairly valued at current levels. WDAY has emerged as a disruptive competitor in Human Capital Management (HCM) and financial software, and we expect it will continue to grow at an impressive rate. However, there is risk that even Workday's rapid growth doesn't support a valuation much higher than current levels. We believe a Neutral rating is appropriate."
Workday closed at $49.88 on Monday.
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