Workday dips as Monness, Crespi, Hardt lowers PT ahead of Q1 results
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Workday (NASDAQ:WDAY) shares dipped on Wednesday as investment firm Monness, Crespi, Hardt cut the price target on the back-office software company, noting the potential for a recession, daunting geopolitical landscape and rising uncertainties.
Analyst Brian White lowered the per-share price target on Workday (WDAY) shares to $230 from $320, but kept the buy rating going into earnings on May 26.
"Heading into 2022, Workday was well positioned for a recovery; however, the economy is now flirting with a recession, the geopolitical landscape daunting, and the tech tantrum has morphed into a tech apocalypse," White wrote in a note to clients.
Workday (WDAY) shares fell slightly less than 0.5% to $172.90 in early Wednesday trading.
In addition, White noted that Workday (WDAY) is likely to generate $1.426 billion in revenue in the first-quarter, slightly ahead of Wall Street estimates, but sequential sales growth of 4% is "slightly below the four-year average uptick of 5% for past April quarters." 
The analyst also noted that Workday (WDAY) has benefited from the global economic recovery after the early days of the COVID-19 pandemic and there should be "more normalized" renewal rates in 2023. 
But even with a strong product portfolio and an improving tone for enterprise software, an uncertain macro environment could lead to " greater scrutiny in signing large deals, taking longer for transactions to close, or worse," White explained. 
On Tuesday, UBS downgraded Workday (WDAY) shares, noting the potential for a "vulnerability in a downturn."