Why Workday, Inc. (WDAY) Continues to Attract Buy Ratings

Core Insights - Workday, Inc. (NASDAQ:WDAY) is considered one of the most undervalued tech giants, with 75% of analysts recommending it as a buy, indicating strong market confidence [1] - The median price target for Workday is set at $280, suggesting an upside potential of 27.38% from current levels, with individual targets ranging from $230 to $326 [1] - The company has shown solid financial performance, with fourth-quarter revenue guidance exceeding investor expectations and operating margins aligning with consensus estimates [3] Analyst Ratings - Siti Panigrahi from Mizuho Securities reiterated a 'Buy' rating for Workday, maintaining a price target of $275, reflecting a 25% upside potential [1] - Freedom Capital Markets adjusted its price target for Workday to $280 from $290 while keeping a 'Buy' rating after the company's third-quarter fiscal 2026 results [2] Financial Performance - Workday enhanced its product offerings through the integration of Paradox and accelerated its AI agent ecosystem, contributing to its strong financial performance [3] - The company raised its full-year 2026 revenue outlook while maintaining its operating margin projections, indicating confidence in future growth [3] Emerging Risks - Freedom Capital Markets identified risks such as the normalization of organic growth, contributions from M&A affecting contracted revenue backlog, and potential integration issues with newly acquired assets [4] - Despite the positive outlook, there are concerns regarding the sustainability of growth and the impact of acquisitions on revenue [4]