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On Monday, DA Davidson adjusted their outlook on monday.com Ltd. (NASDAQ: MNDY), increasing the price target from $300 to $350, while maintaining a Neutral rating on the company’s shares. The adjustment followed monday.com’s recent earnings report, which surpassed expectations and led to a rise in share prices. The stock is currently trading near its 52-week high of $324.99, though according to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The company’s performance in the quarter was stronger than anticipated, despite previous concerns about a slowdown in the EMEA region last November. At that time, the company’s stock experienced a roughly 15% decline by the end of 2024. However, the latest earnings report seems to have alleviated investor concerns, contributing to the stock’s positive movement. InvestingPro data reveals impressive fundamentals, including a robust gross profit margin of 89.46% and strong revenue growth of 33.9% over the last twelve months. Subscribers can access 10+ additional ProTips and detailed financial metrics through InvestingPro’s comprehensive research platform.
DA Davidson’s analyst noted that monday.com is navigating a transition in its Chief Revenue Officer (CRO) role effectively and has provided an optimistic outlook for the year 2025. The firm’s analysis suggests that monday.com continues to offer a unique blend of robust growth and profitability, supported by its strong financial health score of "GREAT" on InvestingPro and a healthy current ratio of 2.67, indicating solid liquidity.
The analyst’s commentary highlighted the company’s consistent execution and the strength of its recent guidance. Despite the positive attributes, DA Davidson believes that the current share price already reflects the high quality of monday.com’s offerings, leading to the decision to maintain a Neutral stance on the stock.
The upgraded price target to $350 indicates DA Davidson’s recognition of monday.com’s performance and market position, yet the Neutral rating suggests that the firm advises caution, implying that the stock might be fully valued at its current levels.
In other recent news, monday.com has been the subject of various analyst ratings and adjustments. Canaccord Genuity boosted its target for the company to $375, citing robust growth potential and favorable market positioning. The firm also lauded the company’s nearly 90% gross margins and elasticity in performance-based marketing spend.
On the other hand, Barclays (LON:BARC) reaffirmed its Overweight rating on monday.com, maintaining a price target of $325. This endorsement follows the company’s recent financial performance, which exceeded investor expectations, and the introduction of new AI pricing strategies expected to contribute to a strong outlook for fiscal year 2026.
Citi also maintained a Buy rating on monday.com with a target of $298, following the company’s robust financial results for the fourth quarter of 2024. The company reported a $6.5 million increase in revenue, $10.0 million in EBIT, $6.4 million in billings, and $7.6 million in free cash flow (FCF).
TD Cowen, however, cut its target for the company to $300 but maintained a Buy rating. The firm noted that despite a downturn in demand for monday.com’s core Project Management solutions in the EMEA region, the demand in the United States remains strong.
Finally, Baird raised its price target for monday.com to $275, maintaining a Neutral rating on the company’s shares. The firm anticipates that monday.com may set its initial revenue guidance for the year 2025 below the market expectation of $1,221 million. These are the recent developments surrounding monday.com.
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