In a recent analysis, Mizuho has adjusted its price target for Workday (WDAY, Financial), reducing it from $320 to $275. Despite this reduction, the firm maintains an Outperform rating on the stock. This adjustment is part of a broader review of the software sector, reflecting a general reduction in software multiple valuations.
According to Mizuho, the recent downturn in the market could offer a compelling opportunity for investors, given their anticipation of robust first-quarter earnings across the industry. However, they forecast a more cautious tone from management regarding projections for the fiscal year.
The firm also notes that tariffs are unlikely to significantly impact the core fundamentals of software-as-a-service companies. This stability is expected to underpin ongoing sector performance regardless of broader market challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 34 analysts, the average target price for Workday Inc (WDAY, Financial) is $309.36 with a high estimate of $360.00 and a low estimate of $250.00. The average target implies an upside of 33.15% from the current price of $232.34. More detailed estimate data can be found on the Workday Inc (WDAY) Forecast page.
Based on the consensus recommendation from 40 brokerage firms, Workday Inc's (WDAY, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Workday Inc (WDAY, Financial) in one year is $303.01, suggesting a upside of 30.42% from the current price of $232.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Workday Inc (WDAY) Summary page.
