Bank of America rates Workday 'Neutral' citing slowing growth and limited near-term catalysts.

Bank of America reinstated a 'Neutral' rating on Workday Inc with a $140 price target, noting the company remains a high-quality SaaS franchise but faces slowing revenue growth and few near-term growth catalysts. Shares have dropped about 42% year-to-date, reflecting investor concerns as revenue growth slows from around 30% to low-to-mid teens percentages. Key challenges include pressure on customer seat counts, rising AI competition, and shifts in software pricing models. While Workday's AI initiatives and expansion efforts offer long-term potential, these have yet to accelerate growth, and the firm expects a mature SaaS growth trajectory ahead.