Citi stands by its bullish view on Workiva (NYSE:WK), reiterating a Buy rating and maintaining a $130 price target, naming it a top pick despite the stock’s sharp year-to-date decline of 36%.

The recent selloff, Citi argues, is largely driven by investor concerns over European sustainability regulations (CSRD) and the perceived threat they pose to Workiva’s growth trajectory. However, the firm sees this reaction as excessive, emphasizing that ESG-related products still make up a small portion of Workiva’s total addressable market. Additionally, the company's platform strength remains intact, and long-term growth prospects are still compelling.

At current levels—trading at just 3.8x enterprise value to revenue and 24.4x EV to free cash flow—Workiva appears attractively priced, according to Citi. While near-term regulatory uncertainty could continue to weigh on performance and introduce risks of project delays, the bank believes this headwind is temporary and likely overstated.

Citi also acknowledged broader macro challenges such as tariff uncertainty but noted that with less than 20% of Workiva’s business stemming from international markets, exposure to such pressures is limited.