- Believing new revenue-recognition rules will prevent many firms from implementing Workday's (WDAY -1.4%) cloud financials apps, Brean's Yun Kim has downgraded shares to Sell, and set a $55 target.
- Kim thinks companies will be nervous about "additional risk and uncertainties" as they adopt the new rules. Though Workday still gets the lion's share of its revenue from its cloud HR apps, the company has been counting on financials apps to act as a growth driver. Workday disclosed on its FQ4 earnings call over 100 financials clients were now live.
- Pac Crest downgraded Workday last month. FQ1 results arrive on May 31.