Workday slips even as Deutsche Bank highlights near-term buy catalyst
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Workday (NASDAQ:WDAY) shares slipped fractionally in premarket trading on Tuesday even as investment firm Deutsche Bank highlighted a near-term buy catalyst on the back office software maker.
Analyst Brad Zelnick said he expects Workday (WDAY) to report "healthy" fiscal fourth-quarter results, as recent partner checks showed a "noticeable" uptick from the third-quarter.
"From our field checks, we are hearing of healthy [medium enterprise] demand, much of which is purely incremental for WDAY, in some cases winning accounts with as few as 500 employees or less," Zelnick wrote in a note to clients. 
For large enterprises, Zelnick added that he has heard Workday (WDAY) has picked up "healthy deal activity, including some mega deals," in areas such as financial and professional services.
"With the stock performing in line with ... peers [year-to-date] and only marginally outperforming Software since [third-quarter] results, we believe the event sets up well and will prove to be a positive catalyst," Zelnick added.
Workday (WDAY) is slated to report fourth-quarter results after the close of trading on February 27. A consensus of analysts expect the company to earn 90 cents per share on $1.63B in revenue.
Last week, hedge fund Point72 Asset Management disclosed that it had shed its stake in Workday (WDAY) during the fourth-quarter, while making several other changes to its portfolio.