Workday slips on Deutsche Bank cut, citing preference for 'earlier cycle names'
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Workday (NASDAQ:WDAY) shares slipped on Monday after Deutsche Bank downgraded the software company, citing a preference for "earlier cycle names."
Analyst Brad Zelnick lowered his rating on Workday (WDAY) to hold from buy and cut the price target to $195 from $215, noting that the firm is positioning itself for a second-half recovery in software stocks.

"We therefore look at our coverage through a FIFO (First In, First Out) prism, preferring earlier cycle names over WDAY which we see as much later-cycle within Software," Zelnick wrote in a note to clients. "Our investor conversations also lead us to believe WDAY is among the most consensus names in our coverage at this point, and we altogether expect the stock will more likely perform in-line rather than outperform this year."
Workday (WDAY) fell nearly 2% in premarket trading.
Earlier this month, Wells Fargo listed Workday (WDAY) listed Workday (WDAY) among its top enterprise software stocks for 2023.
Analysts are largely bullish on Workday (WDAY). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates WDAY a HOLD.