BMO Initiates Workday At Market Perform

BMO's Keith Bachman initiated coverage on Workday Inc WDAY with a Market Perform rating and $90 target.

"We like the story but would advise looking for a better entry point," Bachman said.

The BMO analyst suggested Workday is the best positioned vendor that could steal share in the cloud HCM market. He also pointed to the company's FMS product and noted "enterprises are just beginning to adopt cloud FMS, which should provide atailwind for Workday’s growth."

Workday shares closed Tuesday's session up 2.4 percent at $80.85. Bachman's new price target represented potential upside of about 11 percent.