The firm also boosted the Pleasanton, CA-based company's price target to $82 from $69, noting there's potential for the company to see a sales increase in the second half of 2016, TheFly reports.
Wedbush no longer sees failure to meaningfully beat and raise guidance for subscription revenue as a significant downside catalyst for Workday.
Additionally, Jefferies raised its price target to $79 from $72 and maintained its "hold" rating on Workday.
At a user conference yesterday, the financial management and human capital software company detailed several encouraging product updates, the firm said.
"We view Workday as a richly valued, unique asset facing significant competitive pressure, however we continue to believe that it will be a substantially larger company in the years to come as it gains market share in the HCM space with large enterprises and as it continues to roll out its financials products," Jefferies said in an analyst note.
The company said it's on track to meet its previously stated long-term financial targets, the firm noted.
Workday also announced yesterday that it's partnering with Microsoft (MSFT) to integrate its HR software with the technology company's Office 365 software.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Workday as a Sell with a ratings score of D+. This is driven by a number of negative factors, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: WDAY