Monday.com stock price target lowered to $285 by JPMorgan

Investing.com - JPMorgan has reduced its price target on monday.com Ltd. (NASDAQ:MNDY) to $285.00 from $350.00 while maintaining a Neutral rating on the stock. The stock has declined over 30% in the past week, now trading near its 52-week low of $173.20. According to InvestingPro data, the company maintains impressive gross profit margins of 89.5% and has achieved 32% year-over-year revenue growth.

The price target adjustment occurred on Tuesday, though JPMorgan maintained its existing Neutral stance on the Work Operating System provider. InvestingPro analysis reveals the company holds more cash than debt and maintains strong liquidity, with current assets exceeding short-term obligations by 2.57x.

JPMorgan analyst Pinjalim Bora noted that monday.com offers organizations the ability to build enterprise-scale software applications and work management tools, with core differentiation in its product infrastructure being agnostic to data structure.

The analyst highlighted that monday.com’s column values are functionally schema-less, with schemas defined as customers build their boards, which serve as starting points for building anything in the platform.

This approach creates significant value because functional equivalents of other software products can theoretically be built on monday.com, empowering knowledge workers rather than requiring them to wait for IT departments to build business solutions.

In other recent news, monday.com Ltd. reported its second-quarter financial results, which fell short of expectations, particularly in the small and medium-sized business (SMB) segment. The company faced higher customer acquisition costs, leading to a $3 million reduction in its second-half revenue projections. Despite this, Oppenheimer noted that monday.com delivered solid results in the second quarter of 2025, although the revenue upside did not translate into stronger guidance for the third quarter or full year. Analysts from Needham, DA Davidson, and Oppenheimer lowered their price targets for monday.com to $250, $275, and $300, respectively, due to challenges with SMB demand and mixed market outlooks.

Needham maintained a Buy rating, expressing optimism about monday.com’s Customer Work Management product, particularly with the upcoming DB 3.0 release. The company also recently launched three new AI-powered capabilities aimed at enhancing productivity and simplifying workflow creation. These features include monday magic, monday vibe, and monday sidekick, which are designed to streamline work processes. Despite the challenges in the SMB segment, these developments reflect monday.com’s ongoing efforts to innovate and adapt to current market trends.

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