Piper Sandler Turns Less Bearish on Workday (WDAY) Following Workday Rising

Core Insights - Workday, Inc. has been upgraded to "Neutral" from "Underweight" by Piper Sandler, with a new price target of $235.00, up from $220.00, following significant announcements at Workday Rising [1][3] - The company is making strides in the AI sector through three recent acquisitions: Sana, Paradox, and Flowise, indicating a commitment to enhancing its relevance in the AI era [2] - Workday has introduced new Flex Credit options and a new data cloud with zero-copy interfaces into Databricks, Snowflake, and Salesforce, which are expected to contribute to future growth despite current execution risks [3] Company Developments - The leadership at Workday is ramping up efforts to increase its relevance in the AI landscape, as evidenced by recent acquisitions and product innovations [2][3] - The company has faced a -15% year-to-date sell-off, contrasting with a +12% performance of the S&P 500, prompting the rating upgrade based on a balanced risk-reward outlook [3] Market Position - While Workday shows potential as an investment, there are other AI stocks perceived to offer greater upside potential and lower downside risk [4]