Workday (WDAY) is likely able to achieve its medium-term targets, RBC Capital said in a note Tuesday following its annual Rising customer conference and analyst day in San Francisco.

At the event, Workday set financial framework for fiscal 2028 that included targets for 13% to 14% in subscription revenue growth and about 35% non-GAAP operating margin.

"We remain believers in medium-term growth drivers of AI, partner enablement, full-suite deals, and international expansion," RBC analysts said.

"Further, we view FY28 targets as achievable," they added following positive partner conversations in Workday's competitive position, AI strategy, and runway for growth.

RBC kept its outperform rating and $340 price target.

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