UPDATE: Piper Jaffray Raises PT on Workday on Company's Multi-Year Growth Opportunity

In a report published on Wednesday, JP Morgan analyst Mark Murphy raised the price target on Workday WDAY from $51.00 to $60.00, and maintained a Neutral rating.

In the report, JP Morgan noted, "We spoke with a couple of contacts in the Workday ecosystem and walk away with consistent conviction in the company's multi-year growth opportunity. The most important feedback is that WDAY is outpacing the entire HR industry with its pace of product development. A key partner stated that he has never seen one product stay ahead of the market and with less competition for as long as Workday has. The rapid pace of development causes our contacts to believe that WDAY will eventually close the functionality gap with software mega vendors, even in Financials. One of our contacts highlighted that two US states are working through RFPs for Workday. While we believe that Workday is at the confluence of a powerful cloud movement and ageing ERP systems ripe for replacement, we continue to struggle with the valuation at 28x EV/FTM revenue."

Workday closed at $68.49 on Tuesday.