Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Piper Sandler reduced its price target on monday.com Ltd. (NASDAQ:MNDY) to $275.00 from $300.00 on Thursday, while maintaining an Overweight rating on the stock. The company, which boasts impressive gross profit margins of 89.42% and maintains strong financial health according to InvestingPro metrics, has seen its stock decline nearly 27% over the past six months.
The research firm cited slightly lower growth assumptions through fiscal year 2029 and a reduced EV/FCF target of 25x compared to the previous 26x in its valuation model. Piper Sandler noted increased near-term risk from headwinds affecting monday.com’s sub-$50K customer cohort, which represents 62% of the company’s annual recurring revenue. Despite these concerns, InvestingPro data shows the company maintaining robust revenue growth of 30.24% over the last twelve months, with 11 analysts recently revising their earnings expectations upward.
Despite the price target reduction, the firm continues to view monday.com as "one of the marquee growth stocks" in its coverage universe. Piper Sandler highlighted several multiproduct cross-sell opportunities that could help the company maintain over 20% top-line growth and 25%+ free cash flow margins.
The firm noted that monday.com’s formal 2027 revenue target of $1.8 billion is only 2% below Piper Sandler’s own estimate, describing it as a "conservative starting point for a proven high-growth + high-margin model with a solid track record of execution."
Piper Sandler suggested the risk-reward profile for monday.com appears "compelling" following a 45% sell-off from 52-week highs, which has pushed the company’s next-twelve-months EV/S and EV/FCF multiples near four-year lows at 6.5x and 23x, respectively.
In other recent news, monday.com has been the focus of several analyst assessments following its Elevate conference in New York City. KeyBanc reiterated its Overweight rating on the company and set a revenue target of $1.8 billion for 2027, which management described as a base case scenario. This target is noted to be below previous analyst estimates. DA Davidson also maintained a Buy rating on monday.com, keeping a $275 price target after attending the company’s user conference. Cantor Fitzgerald adjusted its price target for monday.com to $257, down from $286, while maintaining an Overweight rating, citing positive opportunities despite some concerns about SEO pressures. Needham reaffirmed its Buy rating with a $250 price target, highlighting monday.com’s transition to an AI-powered work execution platform. These developments underscore the company’s strategic focus on AI and growth prospects, as noted by various analysts.
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