09:36 AM EDT, 05/24/2024 (MT Newswires) -- Workday's (WDAY) shares may remain under pressure during the near-term until investors gain confidence that the company's fiscal Q1 issues are transitional, Oppenheimer analysts said in a note to clients Friday.

The firm noted the system software company had a slow start to fiscal year 2025 due to fewer big deals, less customer hiring, elongating sales cycles, and in the Europe, Middle East, and Africa.

Despite the warning, Oppenheimer noted the company "hit an air pocket" in fiscal Q1 two years ago but rebounded strongly the following quarter.

The firm maintained its outperform rating on the stock, but lowered its price target to $300 from $320.

Shares of Workday were down nearly 11% in early Friday trading.

Price: 233.63, Change: -27.27, Percent Change: -10.45