DA Davidson analysts cut Workday (NASDAQ:WDAY) to Neutral from Buy, maintaining a $300 per share price target in the stock in a note assuming coverage of the stock on Wednesday.
Despite the downgrade, the firm was positive on the stock but said they feel it is appropriately valued.
"Workday remains a best-in-class HCM solution with a growing financial management business (FINS) which, in our view, is currently priced into the stock," DA Davidson wrote.
"As the business continues to make investments in its GTM motion and innovative product offerings, we don't expect margins to expand materially in the intermediate term," analysts added.
Despite the firm remaining on the sidelines until revenue accelerates from current levels, analysts said they value the quality franchise, and the company remains part of their "Best of Breed Bison list."