Selected stock price target news of the day - February 28th, 2024

By: Matthew Otto

Workday Surpasses Profit Expectations but Faces Economic Uncertainties

Workday reported an adjusted profit per share of $1.57 for the fourth quarter, surpassing the estimated $1.47 according to LSEG data. The company’s fourth-quarter revenue stood at $1.92 billion, in line with market expectations, while subscription revenue for the same period rose by 18% to $1.76 billion.

Amidst economic uncertainties, Workday reiterated its subscription revenue guidance for fiscal year 2025, maintaining a range between $7.73 billion and $7.78 billion. This announcement comes at a time when the tech industry has witnessed layoffs, affecting more than 42,000 employees across 170 tech companies in the early part of the year, as reported by Layoffs.fyi.

As part of its strategic growth initiatives, Workday announced plans to acquire HiredScore, an AI-powered talent orchestration solutions provider, anticipating the completion of the transaction in the first quarter of its fiscal year 2025.

Analysts Split on Future Outlook with Varied Ratings and Targets

Citigroup’s Steven Enders maintained a Neutral rating and increased the price target from $270 to $293.
Guggenheim’s John Difucci reiterated a Sell rating and the price target at $190.
UBS’s Karl Keirstead maintained a Neutral rating but lowered the price target from $315 to $300.
JMP Securities’ Patrick Walravens reiterated a Market Outperform rating and the price target at $315.
DA Davidson’s Gil Luria reiterated a Neutral rating and the price target at $300.
Goldman Sachs’ Kash Rangan kept a Buy rating and raised the price target from $270 to $310.
Morgan Stanley’s Keith Weiss kept an Overweight rating but decreased the price target from $335 to $330.
Mizuho’s Siti Panigrahi maintained a Buy rating and raised the price target from $290 to $325.
Needham’s Scott Berg reiterated a Buy rating and raised the price target from $300 to $350.
Stifel’s Brad Reback kept a Hold rating and increased the price target from $250 to $290.
Barclays’ Raimo Lenschow maintained an Overweight rating but lowered the price target from $326 to $316.

Which Analyst has the best track record to show on WDAY?

Analyst Steve Enders (CITI) currently has the highest performing score on WDAY with 6/7 (85.71%) price target fulfillment ratio. His price targets carry an average of $-2.05 (-0.69%) potential downside. Workday stock price reaches these price targets on average within 45 days.

Unity Software Revenue Exceeds Expectations but EPS Falls Short, Guidance Disappoints

Unity Software reported revenue of $609 million, which exceeded analysts’ expectations of $551.57 million. The company’s earnings per share fell short, registering a loss of 66 cents compared to the anticipated 46 cents. Furthermore, Unity issued guidance for the current quarter projecting adjusted earnings between $45 million and $50 million, far below analysts’ expectations of $113 million..

The financial challenges faced by Unity were further highlighted by its decision to embark on a corporate restructuring plan, including the reduction of approximately 25% of its workforce, aimed at optimizing costs. Additionally, the company announced the discontinuation of non-strategic business units, such as professional services and the Luna marketing business, in an effort to streamline operations.

Despite reporting a fourth-quarter revenue increase of 35% year-over-year, reaching $609 million, Unity’s net loss narrowed to $254 million from close to $288 million a year earlier. Unity remains focused on its strategic portfolio, with guidance for the first quarter totaling between $415 million and $420 million, contrasting sharply with analysts’ expectations of $534 million in total revenue.

Analysts Adjust Price Targets Amidst Mixed Outlook

Needham analyst Bernie McTernan maintained a Buy rating and lowered the price target from $40 to $31.
Stifel analyst Parker Lane maintained a Buy rating and lowered the price target from $35 to $32.
Barclays analyst Mario Lu reiterated an Equal-Weight rating and decreased the price target from $30 to $28.
Wedbush analyst Michael Pachter reiterated an Outperform rating and lowered the price target from $50 to $33.5.
Piper Sandler analyst Brent Bracelin upgraded from Underweight to Neutral and downgraded the price target from $35 to $30.

Which Analyst has the best track record to show on U?

Analyst Michael Pachter (WEDBUSH) currently has the highest performing score on U with 6/11 (54.55%) price target fulfillment ratio. His price targets carry an average of $2.48 (7.99%) potential upside. Unity Software stock price reaches these price targets on average within 115 days.

FIS Performance in Q4 2023: Revenue Growth, Margin Expansion, and Capital Returns

FIS concluded its Fourth Quarter 2023 Earnings Call, highlighting financial achievements. The company reported total adjusted revenue growth of 2% for the full year 2023, driven by a 4% growth in total company recurring revenue, notably within the Banking and Capital Markets segments, which saw a 5% increase. Additionally, FIS achieved an adjusted EBITDA margin expansion of 70 basis points over the same period.

Furthermore, FIS announced the completion of the majority sale of the Worldpay business to GTCR, resulting in FIS holding a meaningful 45% stake in Worldpay. FIS plans to return over $4 billion of capital to shareholders in 2024, primarily through share repurchases and dividends.

Looking ahead, FIS projects accelerated revenue growth of 4% to 4.5% for 2024, coupled with a 20 to 40 basis points expansion in adjusted EBITDA margin.

Analysts Raise Price Targets Following Earnings Call

Mizuho analyst Dan Dolev maintained a Buy rating and raised the price target from $73 to $76.
JP Morgan analyst Tien-Tsin Huang reiterated an Overweight rating and increased the price target from $71 to $75.
UBS analyst Timothy Chiodo maintained a Neutral rating and upgraded the price target from $66 to $70.
Morgan Stanley analyst James Faucette kept an Overweight rating and raised the price target from $73 to $77.
RBC Capital analyst Daniel Perlin reiterated an Outperform rating and increased the price target from $67 to $75.
Truist Securities analyst Andrew Jeffrey kept a Hold rating and upgraded the price target from $55 to $65.

Which Analyst has the best track record to show on FIS?

Analyst Jeff Cantwell (WELLS FARGO) currently has the highest performing score on FIS with 4/7 (57.14%) price target fulfillment ratio. His price targets carry an average of $-1.11 (-1.94%) potential downside. Fidelity National Information Services stock price reaches these price targets on average within 4 days.