Raymond James Upgrades Workiva (WK) to Outperform

Raymond James analyst Brian Peterson upgraded Workiva (NYSE: WK) from Market Perform to Outperform with a price target of $135.00.

The analyst comments: "We are upgrading shares of Workiva to an Outperform from a Market Perform, as we believe that the accelerating bookings dynamics observed in 3Q24 can continue and drive an acceleration in subscription revenue over the next 12 months. This dynamic coupled with positive (albeit early) commentary around the company’s multi-pronged approach to revamping its go-to-market organization (medium term tailwind), gives us confidence in the company’s ability to achieve its 2027 revenue target of $1.1-1.2 billion that we do not believe is reflected in the stock today. Ultimately, we are hard-pressed to find a quality SaaS name with accelerating growth (>20% subscription growth) and a medium term growth catalyst that still trades at a discount to the broader group, and see the potential for both estimates to come up and multiple expansion in 2025. While we acknowledge that the company is unlikely to guide to it, we believe that 20%+ subscription revenue is obtainable once again in 2025 (made more impressive by roughly two consecutive years of achieving that target in a challenging macro). While shares have outperformed already the last few months, we see several potential catalysts on the horizon for adoption including 1) continued regulatory tailwinds (i.e., CSRD deadlines/State of California); 2) technological drivers (ERP refresh cycle); and 3) a continued improvement in capital markets activity (upside to our model)."

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

Shares of Workiva closed at $108.87 yesterday.

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