Workday falls on UBS downgrade, noting potential for 'vulnerability in a downturn'
hapabapa/iStock Editorial via Getty Images


Workday (NASDAQ:WDAY) shares fell on Tuesday as investment firm UBS downgraded the back-office software company, noting the potential for a "vulnerability in a downturn."
Analyst Karl Keirstead cut his rating on Workday (WDAY) to neutral and lowered the per-share price target to $185 from $275. Going into first-quarter earnings, Keirstead did 9 checks and saw the potential for Workday (WDAY) to be vulnerable if economic conditions get worse.

"While Workday shares are down -33% [year-to-date], in-line with the peer group, we're not convinced that Workday shares fully reflect the risk that back-office HR/Fins projects might be disproportionately delayed in a downturn," Keirstead wrote in a note to clients.
Workday (WDAY) shares fell more than 2% to $172 in premarket trading on Tuesday.
The company reports first-quarter results May 26 and a consensus of Wall Street analysts expect Workday (WDAY) to earn 85 cents per share on $1.43 billion in sales.
Last month, Goldman Sachs listed Workday (WDAY) as one of the companies with the best pricing power in the tech sector.