UPDATE: FBN Securities Initiated Workday at Sector Perform on Valution

FBN Securities initiated Workday

with a Sector Perform rating and a $60.00 price target. FBN Securities analyst Shebly Seyrafi commented, "We are initiating coverage of Workday (WDAY) with a Sector Perform rating and $60PT. Founded by the former leaders (some would say visionaries) of PeopleSoft (which Oracle acquired in 2005), the company has built a very strong cloud-based HCM (human capital managemnet) solution (using object oriented technology, in-memory technology, integration with other applications) and is now expanding into financials/ERP (thus greatly expanding its TAM). […] Key concerns include valuation (EV/sales ratio is high, even relative to its fast growth rate), lockup expirations in April, and growing SaaS competition with Oracle and SAP." Workday closed at $60.37 on Tuesday.