BofA Reaffirms Buy on Workday (WDAY), Maintains $265 Price Target After Analyst Day

Core Insights - Workday, Inc. is recognized as a significant player in the AI sector, with a Buy rating and a price target of $265.00 reaffirmed by BofA Securities Analyst Brad Sills following the company's analyst day at the Workday Rising user conference [1] Group 1: Recent Developments - Workday has made a strategic acquisition of Sana for $1.1 billion, partnered with Microsoft to integrate Azure AI Foundry agents into its Illuminate platform, and introduced a new flex credit pricing model for its AI engine [2] - The company has updated its growth target to a more achievable range of 12% to 15%, down from mid-teens, and aims for a 35% margin target for FY28, an increase from over 30% in FY27 [3] Group 2: Financial Projections - BofA anticipates that these strategic changes will enhance Workday's free cash flow, projecting a two-year compound annual growth rate of 23% in FY28, up from 20% in FY27 [4]