Workday (NASDAQ:WDAY) experienced a 10% intra-day drop in its shares due to the disappointing long-term guidance provided during the Workday Rising event, leading several Wall Street firms to revise their price targets and estimates.
Workday has revised its outlook, now anticipating subscription revenue growth of 17%-19% through 2027. This falls below the Street expectation of 20.6% growth.
In response to this weaker guidance, analysts at BofA Securities, Wolfe Research, Citi, and Barclays have adjusted their price targets downward.
BofA Securities lowered its price target from $275 to $260 while maintaining a Buy rating. The analysts suggested that, given the challenging macroeconomic environment, the company may have built a reasonable level of caution into its expectations.
Citi reduced its price target from $247 to $236 while keeping a Neutral rating. The bank pointed out that while the outlook is disappointing, a portion of it may be attributed to macroeconomic factors and the conservatism of a new team in resetting expectations.