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On Monday , Cantor Fitzgerald analyst Thomas Blakey updated the price target for monday.com Ltd. (NASDAQ:MNDY) to $380, marking a significant increase from the previous $292 target. The firm has maintained its Overweight rating on the stock. The stock currently trades at $326.58, having surged an impressive 28.5% in the past week alone. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 14 additional exclusive insights available to subscribers. Blakey’s adjustment follows a period of strong performance indicators for the company, including a record low gross churn and impressive large customer key performance indicators (KPIs) that showed acceleration in the fourth quarter of 2024. The company maintains robust financial health with an impressive 89.5% gross profit margin and has demonstrated strong revenue growth of 33.9% over the last twelve months.
The analyst highlighted that trends since November have been robust across various customer segments, such as small and medium-sized businesses (SMBs) and large customers. The shift in sales linearity in the fourth quarter, as the company moved up-market, resulted in some larger deals transitioning from November to December. This strategic shift contributed to the acceleration of customer count, average revenue per customer (ARPC), and annual recurring revenue (ARR) among larger clients. With a strong current ratio of 2.67 and more cash than debt on its balance sheet, InvestingPro data shows monday.com is well-positioned to support its growth initiatives. Get access to the comprehensive Pro Research Report for deeper insights into monday.com’s financial health and growth prospects.
Furthermore, the launch of monday.com’s Service feature, although slightly later than expected, is off to a strong start. The platform’s AI usage saw a sharp increase in the fourth quarter of 2024. Interestingly, the company is not currently charging for AI usage, opting instead for a consumption-based pricing model.
Management’s guidance for calendar year 2025 was characterized as "responsible" during the earnings call. The forecast includes no revenue from AI and suggests a mid-to-high teens percentage growth for 2025, excluding pricing and new product contributions. Blakey views this estimate as conservative compared to the 25% growth achieved in calendar year 2024.
In other recent news, monday.com has been the focus of several analyst firms, all raising their stock price targets following the company’s impressive fourth-quarter results. Goldman Sachs has set its target at $400, maintaining a Buy rating, citing the company’s strong performance, including a 32% year-over-year increase in revenue. Cowen raised its price target to $385, noting a positive outlook due to stabilization of macroeconomic factors and growth acceleration in the United States. Needham also increased its price target to $400, highlighting the company’s growth and consistent demand, especially from larger customers. DA Davidson raised its target to $350, maintaining a Neutral rating, while recognizing the company’s strong earnings report. Lastly, Canaccord Genuity increased its target to $375, retaining its Buy rating, acknowledging the company’s robust growth potential and favorable market positioning. These developments reflect the company’s recent positive financial performance and potential for future growth.
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