William Blair Reiterates Outperform Rating on Workday (WDAY)

William Blair analyst Patrick McIlwee reiterated an Outperform rating on Workday (NASDAQ: WDAY).

The analyst comments "Workday shares are now up 71% from April lows and only down 6% year-to-date. At the current price shares trade at 12.4 times our calendar 2027 free cash flow estimate, relative to the peer group median (large-cap software companies) of 17.7 times. While recent macro headwinds, pressure on seat-based software models, and recent buyout rumors have added a layer of complexity to the story, we continue to view Workday as a best-in-class HCM platform and believe that the company remains well positioned to drive durable growth as it continues to: 1) consolidate share in its core enterprise market, 2) build out increasingly powerful AI-supported products/functionality, 3) cross-sell into financials, and 4) effectively move downmarket. The key risks to our rating include financials traction with enterprise customers, pressure on seat-based software models, and employment growth."

For an analyst ratings summary and ratings history on Workday click here. For more ratings news on Workday click here.

Shares of Workday closed at $193.57 yesterday.

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