Workday (WDAY) Focused Towards AI Strategy Acceleration

Workday Incorporated (NASDAQ:WDAY) is one of the 12 oversold software stocks to invest in.

On February 10, the price target on Workday Incorporated (NASDAQ:WDAY) was reduced from $285 to $230 by BTIG analyst Allan Verkhovski. He maintained a Buy rating on the stock, following the appointment of co-founder Aneel Bhusri as CEO, replacing Carl Eschenbach.

Verkhovski highlighted that Workday’s accelerated AI strategy could require increased investments and viewed the leadership transition favorably. He remains confident in Bhusri’s ability to guide the company through the evolving AI landscape.

On February 9, Oppenheimer analyst Brian Schwartz also maintained an Outperform rating on Workday Incorporated (NASDAQ:WDAY), following Carl Eschenbach’s departure as the CEO, with Aneel Bhusri stepping in as his successor. The analyst views Bhusri as well-positioned to guide the company through the software industry’s transition towards AI technologies.

He believes that the timing of this announcement is critical given the company’s relative underperformance in revenue and stock growth, along with the AI product narrative. Schwartz also cautioned that such transitions inherently introduce uncertainty and possible strategic shifts.

Workday Incorporated (NASDAQ:WDAY) delivers enterprise cloud applications for financial management, human capital management, and data analytics. Its financial management capabilities include financial processing, consolidation, internal control, audits, and analytics. The company facilitates end-to-end human capital management functions that include hiring, onboarding, training, and payments for employees.

While we acknowledge the risk and potential of WDAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WDAY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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