Goldman Sachs Initiates Workday (WDAY) at Neutral as Challenging Market Share Gains Temper AI Optimism

Group 1 - Workday Inc. is viewed as a promising long-term investment, with Goldman Sachs initiating coverage at a Neutral rating and a price target of $238 [1][2] - Goldman Sachs' analysis is part of a broader coverage of 12 software stocks, emphasizing AI as a significant long-term growth driver that will expand the sector's Total Addressable Market (TAM) over the next decade [1][2] - Despite the positive outlook on AI, Goldman Sachs expressed caution regarding Workday's growth trajectory, indicating that the company may face challenges in capturing additional market share in its next phase of expansion [2][3] Group 2 - RBC Capital adjusted its price target for Workday from $320 to $300 while maintaining an Outperform rating, suggesting that 2026 will be a crucial year for companies ready for enterprise AI adoption [3] - The firm indicated that companies prepared for AI will see clear benefits, while those unprepared may struggle against the narrative that AI threatens traditional software models [3]