D.A. Davidson’s Jack Andrews maintains a Buy rating on the company, with a price target of $107.
Andrews expects the company to have
The analyst expects subscription services to report 38 percent revenue growth to $334.9 million, with professional services delivering 8 percent revenue growth to $67.6 million.
The non-GAAP EPS estimate is slightly above the consensus expectations at $(0.02).
“WDAY has met or beaten consensus revenue and EPS estimates in 14 of the 16 quarters it has been public, missing the Street EPS estimate in FY2Q17,” Andrews mentioned.
In addition, billings growth during Q3 is likely to have been more or less on par with revenue growth, growing 31.3 percent year-on-year to $446.2 million, in line with the guidance.
The analyst believes Workday is well positioned to benefit from two near-term catalysts.
“First, we believe pending new revenue recognition rules are increasing interest in WDAY's FM product,” Andrews stated.
Secondly, the analyst believes the recent NetSuite Inc NYSEN
Andrews expects the acquisition to strengthen Workday’s competitive position, as least in the near term.
|Oct 2016||Canaccord Genuity||Maintains||Buy|
|Sep 2016||Brean Capital||Maintains||Sell|
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