Increased competition and slowing cloud adoption rates will undercut growth for the human resources software maker Workday, according to one Wall Street analyst.
UBS initiated coverage of Workday at sell Wednesday, citing a projected revenue deceleration over the next several years.
"We expect healthy, but moderating subscription revenue growth, as Cloud HR adoption rates and increasing competition from legacy players drive growth below historical levels," wrote UBS analyst Jennifer Lowe in a note to clients.