Workday (NASDAQ: WDAY) stock price soared more than 14 per cent since the beginning of this year. Fortunately, the market analysts are expecting WDAY share price to accelerate momentum throughout fiscal 2020. The analysts are showing confidence in cloud markets along with Workday’s substantial revenue growth forecast for the coming years.
The workday stock price is currently trading around $190 level, down from the highest level of $226 a share. Although WDAY share price reversed some losses that it had incurred during the final quarter of 2019, the market analysts are still seeing an attractive entry point for new investors.
Goldman Sachs and Other Analysts Provided Buy Ratings
Goldman Sachs looks bullish over the future fundamentals of one of the emerging software application company. The firm added Workday to its conviction list. Goldman claims that WDAY share price is presenting an attractive entry point after the recent underperformance compared to its peers. Goldman Sachs analyst Heather Bellini said, “Workday is on a path towards outperformance over the course of the year as subscription revenue accelerates.”
William Blair sets Outperform ratings, citing the recent pullback a good entry point. Its analyst Matthew Pfau expects the company to easily exceed expectations in the following quarters. Matthew Pfau also anticipates an acceleration in subscription revenue over the next five years.
Financial Numbers and Outlook is Justifying Analysts Bullish Sentiments
The company topped third-quarter revenue and earnings estimates by a wide margin. Its third-quarter subscription revenue jumped 28 per cent year over year while professional services revenue grew 18 per cent to $139.6ml. On top, the subscription revenue backlog soared 22 per cent to $7.19bn compared to the year-ago period. It anticipates FY20 subscription revenue in the range of $3.085-3.087bn; the company expects 21% year over year growth in subscription revenue in fiscal 2021.
“Companies of all sizes and industries continue to select Workday, and we’re thrilled that as of the end of Q3, we have more than 3,000 customers and 42ml users,” said Aneel Bhusri, co-founder and CEO, Workday.