Workday (WDAY) - Get Report shares were higher on Tuesday after the company said it closed the acquisition of Peakon and analysts at J.P. Morgan added the company to the investment firm's analyst focus list.
J.P. Morgan analyst Mark Murphy affirmed his overweight rating and $260 price target on the Pleasanton, Calif., provider of human-resources and finance applications.
Murphy expects the acquisition of Peakon, an employee-success platform that converts feedback into actionable data, to place it in competition with a market that has been dominated by SAP (SAP) - Get Report and Oracle (ORCL) - Get Report.
The firm sees a potentially "catalyst-rich period" for Workday Financials "as finance teams move past critical systems lockdown and rethink their prioritization of modern cloud systems, which support agility and change orientation," according to Dow Jones.
Workday said in January that it would acquire Peakon, Copenhagen, for $700 million cash.
“I see great opportunity in working together" with Peakon "to provide customers with the tools and insights they need to support employees and build stronger workplaces," Workday Vice Chairman Tom Bogan said in a statement.
Workday shares at last check were 5% higher at $242.64. In 2021 through the close of Monday trading, Workday shares were off 3.6%. It traded at a 52-week low of $107.75 a bit less than a year ago.
"Six years ago, we founded Peakon on the belief that an organization’s most valuable assets are its people, and that people do their best work when they feel heard and supported at work,” said Phil Chambers, co-founder and CEO of Peakon.
“As part of Workday, we'll accelerate and extend that belief."