Goldman Sachs Initiates Workday (WDAY) at Neutral as Challenging Market Share Gains Temper AI Optimism

Workday Inc. (NASDAQ:WDAY) is one of the best future stocks to buy for the long term. On January 12, Goldman Sachs assumed coverage of Workday with a Neutral rating and $238 price target. This decision was made as Goldman Sachs initiated coverage on 12 software stocks, highlighting AI as a major long-term growth driver that will expand the sector’s TAM over the next decade. However, the firm offered a more cautious outlook on Workday and noted that its next stage of capturing market share may prove more challenging than previous cycles.

A day before that, Goldman Sachs initiated coverage of Workday with a Neutral rating and a price target of $238. This assessment was part of a broader sector analysis in which the firm assumed coverage of 12 different software stocks. While the firm has a bullish view of the long-term adoption of AI, Goldman Sachs expressed caution regarding Workday’s specific growth trajectory as the company may face increasing difficulty in securing further market share gains during its next phase of expansion.

Additionally, on January 5, RBC Capital adjusted its price target for Workday Inc. (NASDAQ:WDAY) from $320 down to $300, while maintaining an Outperform rating. The firm suggested that 2026 will be a pivotal year where companies prepared for enterprise AI adoption begin to see clear benefits, while those less prepared may struggle against the narrative that AI threatens the traditional software model.

Workday Inc. (NASDAQ:WDAY) provides enterprise cloud applications in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.