11:09 AM EDT, 10/03/2024 (MT Newswires) -- Workday (WDAY) investors are underappreciating its generative artificial intelligence positioning and monetization potential, Oppenheimer said Thursday.

A survey of the customers of the maker of cloud applications for finance and human resources implied low near-term estimate risk, with positive implications for achieving its growth objectives in 2026, the brokerage said.

The plans to invest in new software, with ongoing efforts to reduce business expenses, are promising for the company to meet the expected range of 15% to 16% in yearly revenue from subscriptions and cost reduction projections for fiscal 2026, according to the note.

"This year's survey indicates that concerns of a near-term revenue cut are overblown, but there is a slightly more cautious IT buyer mindset," Oppenheimer analysts Brian Schwartz and Camden Levy said in a note to clients.

Survey results also indicated that the company should increase platform fee prices, alongside its new generative AI products and innovations, according to the note.

Oppenheimer reiterated its outperform rating on the Workday stock, with a $300 price target.

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