UPDATE: Burke & Quick Partners Initiates Coverage on Workday with Outperform Rating, $93 PT on Long-Term DCF Valuation

In a report published Friday, Burke & Quick Partners analyst Stephen D. Bersey initiated coverage on

with an Outperform rating and $93.00 price target. In the report, Burke & Quick Partners noted, “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.” Workday closed on Thursday at $81.96.