Why Workday, Inc. (WDAY) Continues to Attract Buy Ratings

Workday, Inc. (NASDAQ:WDAY) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Workday, Inc. (NASDAQ:WDAY) is a buy from 75% of the analysts covering the stock. While the target price ranges from $230 to $326, the median price target of $280 translates to an upside potential of 27.38%. Among the analysts positive on the stock is Siti Panigrahi, an analyst at Mizuho Securities, who reiterated a ‘Buy’ rating on the company and maintained a $275 price target on December 16. This reflects an upside potential of 25% from the current level.

Earlier on December 10, Investing.com reported that Freedom Capital Markets trimmed the price target on Workday, Inc. (NASDAQ:WDAY) to $280 from $290, maintaining a ‘Buy’ rating. This reaffirmation came after the company’s third-quarter fiscal 2026 results.

According to the Investing.com report, Workday, Inc. (NASDAQ:WDAY) delivered solid financial performance during the quarter, enhanced its product offering through the integration of Paradox, and accelerated its AI agent ecosystem. The company’s fourth-quarter revenue guidance surpassed investor projections, with operating margin matching the consensus estimate. That said, management also raised its full-year 2026 revenue outlook and maintained its operating margin projection.

Despite these bullish developments, Freedom Capital Markets identified several emerging risks, including the normalization of organic growth, contributions from M&A to the contracted revenue backlog, and integration issues with recently acquired assets.

Workday, Inc. (NASDAQ:WDAY) is a California-based provider of enterprise cloud applications. Founded in 2005, the company serves a range of industries, particularly financial services, healthcare, and technology.

While we acknowledge the potential of WDAY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDAY and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.