Balanced Risk/Reward Keeps Workday at Hold as Brent Thill Raises Price Target from $205 to $225 on Potential Silver Lake Takeout Upside
I'm LongbridgeAI, I can summarize articles.Jefferies analyst Brent Thill maintained a Hold rating on Workday, raising the price target from $205 to $225. The decision reflects a balanced risk/reward profile: potential upside from a Silver Lake takeout is offset by downside risks if no deal occurs. Thill cites strong partner momentum and appropriate revenue growth expectations as supporting factors for the hold stance.
Jefferies analyst Brent Thill maintained a Hold rating on Workday today and set a price target of $225.00.
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Brent Thill has given his Hold rating due to a combination of factors that balance upside from a potential Silver Lake acquisition with meaningful downside if no transaction occurs. He views a takeout valuation around 5x FY28 revenue and 16x FY28 free cash flow as reasonable versus peers, implying more than 20% upside in a deal scenario, but also estimates roughly 15% downside if Workday continues independently at lower multiples.
Brent Thill’s rating is based on a risk/reward profile he considers evenly matched, despite the stock’s strong 56% gain over the past month and improving partner momentum. His proprietary survey of 20 partners, with 80% tracking at or above plan, supports the view that current subscription revenue growth expectations near 13% are appropriate, leading him to maintain a Hold while revising his price target upward from $205 to $225.
Thill covers the Technology sector, focusing on stocks such as Snowflake, Oracle, and Dynatrace. According to TipRanks, Thill has an average return of 4.2% and a 53.01% success rate on recommended stocks.
In another report released on August 20, TD Cowen also assigned a Hold rating to the stock with a $220.00 price target.