Citi Lowers Workiva Price Target to $105 from $108

Citi analyst Steven Enders lowered the price target for Workiva (WK) to $105 from $108 and maintains a Buy rating. The firm sees achievable estimates with a low bar heading into earnings. The summary focuses on the principal points of the article, which are the price target reduction and the analyst's optimistic outlook for the company's earnings.

Citi analyst Steven Enders recently reduced the price target for Workiva (WK) to $105, down from the previous $108, while maintaining a Buy rating. The analyst believes that Workiva's earnings estimates are achievable and that the company is positioned well for future growth [1].

Enders' reduction in the price target reflects a cautious approach to the company's valuation, despite the analyst's optimism regarding Workiva's earnings prospects. The analyst noted that the company's revenue growth and customer retention have been strong, but there are significant financial risks due to net losses and negative equity. Additionally, the analyst highlighted the impact of cautious market sentiment on the overall outlook for the company [1].

Workiva has been a focus of analyst attention in recent months, with a strong consensus of Buy ratings. According to TipRanks, the company has received 16 Buy Ratings in the current month, with no Hold or Sell Ratings [1]. The average analyst price target for Workiva over the past three months is $97.67, indicating a 45.47% upside potential from the current stock price of $67.14 [1].

The reduction in the price target by Citi comes as the company prepares for its next quarterly earnings report. Analysts expect the company to report earnings of $0.05 per share, with a range of $0.05 to $0.07. The previous quarter's earnings per share (EPS) was $0.14, and the company has not beaten its EPS estimate in the past 12 months [1].

In summary, Citi analyst Steven Enders' reduction in the price target for Workiva reflects a cautious but optimistic outlook for the company's earnings prospects. The analyst believes that the company's strong revenue growth and customer retention will drive future growth, despite the significant financial risks and cautious market sentiment.

References:
[1] https://www.tipranks.com/stocks/wk/forecast