Bank of America reinstated coverage of Workday (WDAY) with a Neutral rating and a $140 price target. This move marks a downgrade from the bank's previous Buy rating.
Analysts cited a sharp deceleration in revenue growth. Expansion rates have fallen from approximately 30% to the mid-to-low teens range.
BofA acknowledges Workday's established position as a critical system with a solid customer base. However, the bank remains focused on the company's potential to re-accelerate growth within a challenging market environment.