BofA analysts raised the price target for Workday (NASDAQ:WDAY) to $270 from $260 in a note Monday, reiterating a Buy rating on the stock.
The analysts told investors that the firm spoke with nearly a dozen key Workday SI partners to gauge Q3 deal activity and pipelines, and the "feedback was healthy."
It was "healthy, perhaps a bit better than our Q2 round of checks, with partners suggesting solidly inline or better results," the analysts wrote.
"Key trends we noted include: 1) sustained strength in key focus verticals such as healthcare, state/local government, higher ed and financial services, with tech still somewhat sluggish, 2) healthy HCM add-on deals such as learning, recruiting and talent management, 3) better FINS deal activity in the medium enterprise, though no change in the enterprise," they added.
BofA believes WDAY remains well-positioned to continue capturing gradual share of the HCM and Financial market. "We believe the next catalyst is evidence that the FY27 margin target (25%) is conservative as we move through FY25," said the analysts.