Workday is trading -4.22% lower at $141.00 today after Morgan Stanley downgraded the stock to Underweight from Equalweight, citing continued growth deceleration in the core business.
-
The firm lowered its price target to $145.00 from $185.00, expressing concerns that HCM growth is slowing and overall subscription revenue CAGR implies flat market share.
-
Management previously acknowledged that Q1 FY27 benefited from Q4 deal slippage and indicated that margin expansion would be at a slower pace near term than previously communicated, contributing to investor disappointment.