UPDATE: Citigroup Initiates Workday at Neutral on Software-as-a-Service Competition Outlook

Citigroup initiated coverage on Workday

with a Neutral rating and a $58.00 price target. Citigroup noted, "As compared to “edge” applications such as CRM, talent management and collaboration that have seen significant SaaS uptake, HCM (part of ERP) buyers are more conservative as installations are mission critical and complex, requiring challengers to unseat entrenched incumbents. Also, unlike the time when salesforce.com gained meaningful share of CRM (2005-2011), Oracle now has a SaaS offering (Fusion) that can, at a minimum, slow down sales cycles. Also, we suspect SAP is investing heavily here, but today has little to show in the way of core SaaS HCM offering." Workday closed at $52.61 on Monday.