Workday (WDAY) is likely to exceed Wall Street expectations in its fiscal Q1 results thanks partly to demand for its AI products, Oppenheimer said in a report Tuesday.

Oppenheimer analysts said industry checks pointed to positive expansions activity, including a strong uptake of its AI recruiting and talent management products, amid some macro pressure.

"The read-through from the company-specific data is positive this quarter," they said. Oppenheimer forecast $2 in pro forma earnings per share on total revenue of $2.21 billion.

For the outlook, the analysts said they are increasingly confident that the full year is intact. Oppenheimer kept its outperform rating on the stock with a price target of $320.

"We continue to like the risk/reward on Workday with low investor expectations and F1Q results likely in line to slightly ahead of estimates," the analysts said.

Price: 271.72, Change: -1.58, Percent Change: -0.58