Here’s Why Analysts Just Upgraded Workday, Inc. (WDAY)

We recently compiled a list of the 10 Companies That Analysts Just Upgraded. In this article, we are going to take a look at where Workday, Inc. (NASDAQ:WDAY) stands against the other companies that just upgraded.

The last week was full of negativity as the S&P went down nearly 3.5%. Matters were made worse by raging wildfires in Los Angeles, which have shocked people across the country. Amidst all this, there were a lot of positive developments as analysts continued to point out companies poised for a great performance in 2025.

Artificial Intelligence stocks continue to dominate coverage despite the fear of a slowdown in spending. With agentic AI the new hype, many companies are only just entering their AI journey, so investors still have a lot of undervalued plays that are worth looking at.

To come up with the list of 10 companies that analysts just upgraded, we only considered companies with a market cap of at least $1 billion.

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Workday, Inc. (NASDAQ:WDAY)

Workday, Inc. (NASDAQ:WDAY) received acknowledgment of its efforts from three different analysts last week. The ERP firm has delivered muted returns in the past 5 years, so the analyst recommendations offer hope to investors that the stock’s fortunes may be about to change.

Deutsche Bank upgraded the stock from Hold to Buy and increased the price target from $265 to $300. The company’s Recruiter Agent, which helps hiring managers streamline their recruitment processes, could drive considerable growth considering its ability to offer agentic AI solutions soon. 30% of the company’s deals in the third fiscal quarter came with AI partners, which shows how the company is actively trying to leverage AI to help businesses manage their operations in a better way.

Barclays mentioned similar optimism around the company’s AI ambitions in light of agentic AI solutions. Meanwhile, Wells Fargo added the company to its list of stocks that could offer above-average growth this year. With over 60% gross margins, expected revenue CAGR of 15% over the next 3 years, and a 4% earnings yield, all-time highs are possibly just around the corner.

Overall WDAY ranks 6th on our list of the companies that just upgraded by analysts. While we acknowledge the potential of WDAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as WDAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.