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The price target is lowered by $10 per share to $200 on soft Q1 checks and customer survey results.
“The SI-checks pointed to a lackluster 1Q finish as partners noted during 1Q North America demand weakened Q/Q and Europe only incrementally improved on the heels of aggressive pricing action (checks indicated that SAP is getting much better selling against WDAY HCM),” the analysts said in a note.
Along these lines, they believe bookings could be light. On the survey front, they note that existing clients said they do not intend to accelerate new HCM module adoption in the next 2 years.
“While there is no question the stock is cheap, with a less clear path to revenue growth acceleration we do not expect the stock to outperform peers,” the analysts concluded.
Workday stock is down over 3% on Monday.
