Pacific Crest Securities Sees Stronger-Than-Expected FQ2 Results For Workday

In a report published Thursday, Pacific Crest Securities analyst Brendan Barnicle reiterated an Outperform rating and $116.00 price target on Workday (NYSE: WDAY).

In the report, Pacific Crest Securities noted, “Workday's FQ2 results demonstrated that it continues to take market share. The company continues to win more large deals. Management cited two primary reasons for the larger deals. First, Workday has won several very large customers who have validated Workday's products, like HP and Bank of America. Second, Workday's customer satisfaction continues to run above 95%. Workday exceeded expectations on all metrics. Most importantly, FQ2 (July) billings grew by 56% y/y, faster than even whisper expectations of 40%-plus y/y growth, and management raised its billings outlook.”

Workday closed on Wednesday at $90.30.