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Workday Upgraded, Poised For Breakout Year On Financial Software

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Large companies have a growing appetite for buying enterprise resource planning, or ERP, software via cloud computing platforms, which sets up Workday ( WDAY ) for a "breakout" year, says an analyst who upgraded the stock.

[ibd-display-video id=3062895 width=50 float=left autostart=true] Brent Bracelin, a KeyBanc Capital Markets analyst, on Thursday upgraded Workday to overweight with a price target of 131.

"We see 2018 as a breakout year for Workday as shares could eclipse the 2014 highs driven by inflecting enterprise interest in cloud ERP," said Bracelin in a report.

Workday shares climbed 2.8% in premarket trades on the stock market today . Workday soared 54% in 2017, though the stock slipped from a high of 116.62 set on Nov. 24.

Pleasanton, Calif.-based Workday sells cloud-based software for human relations, payroll and other business functions. Workday has expanded from human capital management software into financial management software.

"2018 has the makings of a breakout year, in our view, where any incremental proof-points that Workday can become a legitimate cloud platform for core financial ERP workloads could create an environment where the shares could benefit from both margin and multiple expansion," added Bracelin.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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