Analysts hold workday stock rallies to record price targets on strengthening in the cloud

Workday Financial Management Desktop Product

Work day

Shares of Workday Inc. set new records on Friday after nearly three-quarters of analysts raised their price targets on the human resources cloud-software software company following earnings reports and outlook.

+ 14.29%
The stock rose more than 14 per cent to an intraday 247.90 high in early trading and rose 12.5% ​​to 3,243.67, setting a new closing record for the stock, which closed at a record 222.17 on July 12.

As of late Thursday, Workday topped Wall Street estimates for the quarter and extended its subscription revenue guidance for the year.

Of the 33 analysts covering Workday, 17 have buy or overweight ratings, 13 have ratings and three have sell ratings. Out of those analysts, 24A has raised the target price in the share price following the earnings of the average target price 2 242.55, according to Factset data.

Stiffel analyst Brad Reebok, who has a hold rating and raised his price target from $ 190 to 7 227, described Workday’s performance as “strong execution during difficult times.”

“Given the complexity and time-consuming nature of the financial system’s upgrades, we do not anticipate a near-term trend in WDAY’s growth rate in this area of ​​the market, but in particular predict additional gains in its core core prices,” he said.

Cowan analyst j. Derrick Wood, who has a market rating and has raised his price target from $ 190 to 250 250, said Workday’s results and outlook are encouraging despite customers’ “vague” costs.

“The WDAY’s reliance on large ticket purchases for back-office fee systems is frightening,” Wood said. “But the deal is lumpy and we want to see a lot more evidence of this before underwriting in 2H. “

Jefferies analyst Brent Thill, who has a hold rating and has raised its price target from 195 dollars to 250 dollars, said Workday encouraged its margin guidance to rise to unprecedented levels in three years.

“While some of these benefits are due to canceled events, we believe this demonstrates WDAY’s ability to deliver more profitability in the future.

Earlier in the week, cloud-based customer relationship-management software company CRM,
More businesses posted record revenue as COVID-19 picked up the pace of their digital transformation. Also on Thursday, cloud-based identity-management services company Octa Inc. Oct.,
Top of Wall Street expectations

Workday shares rose 48% for the year, while First Trust Cloud Computing ETF SKYY,
+ 1.12%
% up% increased and iShares expanded Tech-S Software software sector ETF IgV,
+ 0.50%
Is above 40%. Meanwhile the S&P 500 Index SPX,
+ 0.35%
8%, and the tech-heavy Nasdaq Composite Index comp,
+ 0.34%
Is above 30%.