Workday Upgraded At Stephens; Firm Says 'Force Is Strong'

• The share price of Workday, Inc. WDAY has declined 15.67 percent in the past six months, reaching a low of $69.34 on August 24.
• Alex Zukin of Stephens has upgraded Workday from Equal-Weight to Overweight, while maintaining the price target at $85.
• The upgrade is based on “increased confidence around the signing of Fortune 500 accounts for Workday Financials through 2H16.”

Analyst Alex Zukin expressed optimism regarding the company’s “new products, better positioning around the value proposition for financials, a growing ecosystem, coupled with a revived go-to-market approach.”

While management’s tone appears increasingly positive, Zukin believes that increased potential for “multiple large financial deals” could drive upside to the stock in the intermediate to long term.

More than 400 prospects from 175 companies attended Workday’s Rising even. In addition, the company currently has more than 4,800 trained implementation consultants as part of its ecosystem, representing over 35 percent growth year-on-year.

Zukin believes that although competition has increased, “the change in sales leadership and management from earlier in the year has been the driver of lower billings growth.”

Also, with the messaging in the sales of Workday Financials being honed, along with new products, such as Workday Planning and Executive Scoreboard, the company is well positioned for continued success.