Citi selects MNDY, INTU, WK, BOX as new top stock picks

On Thursday, Citi updated its stock rankings post-earnings season, identifying four companies as its new top picks. The research firm has shifted its focus to what it sees as attractive buying opportunities based on recent performance swings. For investors seeking deeper insights into these companies, InvestingPro offers comprehensive research reports covering over 1,400 US stocks, transforming complex Wall Street data into actionable intelligence.

MNDY, also known as Monday.com, has been highlighted as the top choice with a compelling entry point. The company demonstrates impressive financial health, with InvestingPro data showing remarkable 89.33% gross margins and 33.21% revenue growth in the last twelve months. While Citi sees value in the stock, InvestingPro’s Fair Value analysis suggests the shares are currently trading slightly above their intrinsic value. The company maintains strong fundamentals with more cash than debt on its balance sheet and a healthy current ratio of 2.66.

In the second spot, Intuit (NASDAQ:INTU) received positive remarks following its strong fiscal second-quarter performance. Citi emphasizes Intuit’s conservative guidance as de-risked, expecting a solid tax season ahead and pointing out the underappreciated strength of its QuickBooks Online (QBO) product.

Workiva (NYSE:WK), known for its stable core business, was named as the third top pick. Citi believes the concerns over environmental, social, and governance (ESG) regulatory changes are overblown and highlights Workiva’s guidance for subscription growth above 20%.

Lastly, BOX was chosen as the fourth top pick due to its new Enterprise Advanced suites tier and the potential for re-acceleration driven by underappreciated opportunities in artificial intelligence (AI). Citi finds the valuation of BOX shares to be particularly attractive at this time.

Citi’s new top picks represent a diverse array of technology and software companies, each with unique strengths and market opportunities as identified by the firm’s latest analysis. The selection of MNDY, INTU, WK, and BOX reflects Citi’s strategy to capitalize on current market conditions and the firm’s confidence in these companies’ growth prospects.

In other recent news, monday.com Ltd. has reported strong financial results, with its Q4 2024 revenue increasing by 32% year-over-year to $268 million and its FY 2024 revenue rising by 33% to $972 million. The company’s impressive performance has led to several analyst firms revising their price targets upward. Tigress Financial raised its target to $450, highlighting the integration of artificial intelligence into monday.com’s platform as a growth driver. UBS increased its target to $350, noting that the company’s FY 2025 revenue growth forecast exceeded expectations, although it maintained a Neutral rating due to concerns about free cash flow margins.

Loop Capital Markets also raised its price target to $385, citing strong execution and a positive outlook for 2025, while maintaining a Buy rating. Scotiabank (TSX:BNS) adjusted its target to $400, mentioning the company’s FY 2025 revenue growth guidance that surpassed consensus estimates and noting improvements in various business segments. Cantor Fitzgerald increased its target to $380, emphasizing robust performance indicators and a strategic shift in sales linearity that accelerated customer growth. These developments underscore the confidence analysts have in monday.com’s continued growth and market potential.

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