Shares of the Pleasanton, Calif., company on Wednesday closed up 3.7% to $266.60.
Analyst Robert Simmons said in a note that Workday is a dominant cloud human capital management provider in the U.S. Its financial management suite has matured so as to take the baton on driving growth, the analyst says, according to the Fly.
Simmons adds that Workday's ramping international investments should enable the company to sustain its 20% subscription growth as it tracks toward its $10 billion revenue target.
Workday received a mention on Mad Money on Tuesday as Jim Cramer noted how Workday and other cloud stock stocks rose when last week "we were told the cloud stocks were the worst place to be with inflation on the rise."
Last month, Daiwa initiated coverage of Workday with a buy rating and $320 price target.
In addition Needham analyst Scott Berg raised his target on Workday to $310 from $290 while affirming a buy rating on the shares following the company's analyst day presentation.
Berg backed his view that the company can reaccelerate growth exiting the Covid-19 pandemic.
He also said Workday should be able to maintain 20% or more subscription revenue growth. The analyst said this trend would be consistent with Workday management's targets for $10 billion in total revenue with a 25% operating margin.
In August, Workday reported better-than-expected second-quarter results and offered upbeat guidance, citing strong customer growth.
Workday’s software reportedly wasn't robust enough to fulfill Amazon’s expanding needs.