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On Tuesday, Loop Capital Markets analyst Mark Schappel increased the price target for monday.com Ltd. (NASDAQ: MNDY) shares to $385 from the previous $300, while reiterating a Buy rating on the stock. The revision follows monday.com’s strong performance in the fourth quarter of 2024, where the company reported revenue and profitability that surpassed expectations. According to InvestingPro data, the company maintains an impressive gross profit margin of 89.5% and has earned a "GREAT" Financial Health Score of 3.06 out of 5.
The company, which specializes in work operating systems, saw its revenues climb by 32% to $268 million, beating Loop Capital’s estimate by $7 million. The net dollar retention rate for the period stood at 112%. Additionally, operating margins reached 15.0%, a record high for monday.com. The management team has also provided a positive outlook for 2025, forecasting 25% growth and 11.5% operating margins, figures that are above consensus expectations. InvestingPro analysis reveals that monday.com holds more cash than debt and maintains a healthy current ratio of 2.67, indicating strong financial stability.
Schappel attributed the impressive quarter to several factors, including strong execution, robust performance in the North American enterprise segment, stabilizing macroeconomic conditions outside the United States, pricing improvements, and growing contributions from the CRM and Services products.
Despite monday.com’s stock price surging by 30% today, Loop Capital believes that the current valuation, which is 10.4 times EV/2026E Revenue, is reasonable given the company’s growth prospects and margin expansion. The stock has shown remarkable momentum, with InvestingPro data showing a 44.7% return over the past six months and trading near its 52-week high. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its calculated Fair Value. Schappel’s statement highlighted the company’s solid quarter and optimistic outlook for 2025 as key elements likely to alleviate investor concerns about its growth rates.
Loop Capital’s analysis suggests that monday.com is poised to continue growing its dominant share in the market and improve its competitive stance. Consequently, the firm has expressed confidence in the company’s future by reiterating the Buy rating and raising the price target to $385.
In other recent news, monday.com has been the focus of several analyst adjustments following its strong performance in the fourth quarter. Scotiabank (TSX:BNS) analyst Allan Verkhovski raised the price target for the company to $400, maintaining a Sector Outperform rating, following the company’s full-year 2025 revenue growth guidance that surpassed investor and consensus estimates. Cantor Fitzgerald analyst Thomas Blakey also lifted the stock target to $380, noting robust trends across customer segments.
Goldman Sachs increased its price target to $400, reiterating a Buy rating due to the company’s strong performance, surpassing expectations on key financial metrics. Cowen analysts increased the price target to $385, noting the company’s positive outlook, propelled by stronger sales to larger clients and increased cross-selling. Needham analysts increased the price target to $400 based on the company’s robust fourth-quarter results, driven by notable enterprise growth and consistent demand in the United States.
These recent developments reflect the strong performance and growth prospects of monday.com, as indicated by the company’s impressive fourth-quarter results and robust growth guidance. The company’s strategic initiatives, including the introduction of a consumption-based pricing model for its AI Blocks and the launch of its Service feature, have also contributed to its positive outlook. These developments highlight monday.com’s commitment to innovation and growth, as it continues to outperform expectations and deliver strong results.
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