UBS Cuts Workday Target to $170; BTIG Raises to $230 on CEO Return
UBS cut Workday’s price target to $170 from $240 and kept a neutral rating after board appointed co-founder Aneel Bhusri as CEO replacing Carl Eschenbach. BTIG raised its target to $230 from $285 with a Buy rating, citing Bhusri’s product expertise and confidence in the company’s AI strategy.
1. UBS Price Target Cut
On February 10, UBS lowered its 12-month price target on Workday to $170 from $240 while maintaining a neutral rating, reflecting concerns over near-term growth prospects under the new leadership structure.
2. Stifel’s Revised Outlook
A day earlier, Stifel trimmed its price target to $175 from $235 and retained a Hold rating, noting that recent operational results have fallen short of expectations and flagging the potential for fiscal 2027 guidance to undershoot current consensus.
3. BTIG’s Bullish Adjustment
BTIG increased its target to $230 from $285 and upheld a Buy rating, arguing that co-founder Aneel Bhusri’s return to the CEO role positions Workday well to capitalize on evolving AI-driven demand in its enterprise cloud applications.
4. Leadership Transition
The board reinstated Bhusri as CEO in place of Carl Eschenbach, signaling a strategic shift back to product-focused leadership aimed at accelerating innovation in human capital management, financial management, and analytics offerings.