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Workday stock is a buy ahead of ‘healthy’ earnings next week, analyst says

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Workday Inc. could be primed well for its coming earnings report, according to an analyst.

Deutsche Bank analyst Brad Zelnick opened a bullish short-term catalyst call on the stock Tuesday, ahead of Workday’s
WDAY,
-2.00%

next earnings report, which is scheduled for Feb. 27, after the closing bell. He expects “healthy” results for the fiscal fourth quarter.

See also: DocuSign’s stock sags after downgrade as UBS warns of ‘negative demand signal’

Zelnick wrote that his conversations with industry partners suggest that the company is doing well with “medium enterprise” businesses and seeing “purely incremental” demand from a number of customers. Among this base, Workday appears to be winning accounts with fewer than 500 employees.

Additionally, he sees signs of “healthy deal activity, including some megadeals,” within large-enterprise clients. He called out wins in key categories like financial services and professional services.

Zelnick noted that he has less visibility into Workday’s international business, “though what we’ve been hearing more generally sounds positive relative to modest expectations embedded in Street models.”

Read: Workday to cut 3% of jobs amid a restructuring

Despite his short-term buy call on the stock ahead of the earnings report, he kept a hold rating on the stock over a longer span. Zelnick has a $195 target price on the stock, which was down 1.8% in midday trading Tuesday to a recent $182.41.

Workday shares have declined 15% over the past 12 months as the S&P 500 index
SPX,
-1.70%

has lost about 8%.

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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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