Shares of San Francisco business-analytics firm Splunk at last check fell 3.1% to $127.64, while Workday, the Pleasanton, Calif., provider of human resources and financial management software, edged down 0.3% to $143.19 a share.
Cowen analyst J. Derrick Wood downgraded both firms to market perform from outperform, according to published reports.
Wood lowered his price target on Splunk to $140 a share from $165. The analyst's new price target represents a roughly 9.4% premium over its current trading price.
He said that Splunk faces headwinds beyond the disruption caused by the deadly coronavirus, including a dependence on new deal generation and a need to absorb an influx of new business.
The Cowen analyst slashed his target on Workday more than 27% to $160 a share from $220.
Wood laid out a double-edged critique of Workday in his research note on the software frim.
Workday relies too heavily on "large new customer deals to drive bookings growth," the Cowen analyst wrote, according to Bloomberg.
But landing such deals is now "poised to be much more difficult" as the coronavirus disrupts business activity across the U.S. and the world.
Workday faces "outsized disruption risk to its growth trajectory," the Cowen analyst wrote.
In 2020 through Thursday's trading, Splunk shares dropped 12%. In the same period, Workday shares declined almost 13%.