TD Cowen Adjusts Price Target on Workday to $220 From $155, Maintains Hold Rating

Bank of America raised price targets for ServiceNow (to $150), Figma (to $33), Workday (to $205), Adobe (to $220), and Snowflake (to $395), citing AI-driven growth potential. ServiceNow gained 6.5% on Wednesday, while others rose 3-4%. Analysts note AI could expand these companies' products and revenue, easing earlier disruption fears.

Silver Lake's potential buyout of Workday has boosted its shares by 18%, raising its market value to over $51 billion. Analysts suggest this could restore confidence in software valuations, which have been impacted by AI disruption fears. Recent strong earnings from companies like ServiceNow and gains in the S&P 500 Software & Services index support this optimism.

Workday (WDAY) shares rose 4.5% after Bank of America raised its price target to $205 and Barclays reiterated an Overweight rating. The stock later cooled to $198.28. Analysts cited software multiple expansion and AI disruption concerns easing. Workday is down 3.6% YTD and 19.9% below its 52-week high.

Workday (WDAY) shares rose 17.8% after reports of potential acquisition talks with private equity firm Silver Lake. Analysts suggest this could signal a turning point for enterprise software stocks, which have faced AI-related concerns. Workday's market cap was $43B before the news, with shares down 25% over a year. A deal would be one of the largest private equity software buyouts in history, according to reports.

Midday movers included Intuitive Machines, up about 9% after saying it received an authorization to proceed for a $600 million multisatellite communications program. EyePoint Pharmaceuticals fell about 70% after its Phase 3 wet AMD treatment failed its primary goal. JetBlue dropped 6% after a Seaport Research downgrade. Onto Innovation rose on Goldman coverage. Workday fell after a Deutsche Bank downgrade. Memory chip stocks rose after comments on Apple buying Chinese chips.

BTIG analyst Allan Verkhovski downgraded Workday (NASDAQ:WDAY) from Buy to Neutral, citing overly optimistic cRPO and subscription revenue growth estimates. He expects cRPO growth of 12% in Q3 and 11% in Q4 versus consensus 13.3% and 13%. He cites limited adoption of Flex Credits and notes Reuters said Workday is in buyout talks.