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Investing.com - Jefferies has reduced its price target on monday.com Ltd. (NASDAQ:MNDY) to $300 from $330 while maintaining a Buy rating on the stock. This comes as monday.com shares have plunged 13.73% over the past week, with the stock currently trading at $166.21, significantly below its 52-week high of $342.64.
The price target adjustment comes after monday.com shares fell 15% following the company’s decision not to raise its full-year revenue guidance range for the first time in company history. Additionally, the company’s fourth-quarter guidance missed analyst expectations by 1%, despite the company maintaining a strong 28.62% revenue growth over the last twelve months.
Jefferies noted that monday.com is experiencing impacts from two factors: a small effect from the shift to AI traffic from search, and a more significant impact from its go-to-market strategy shift toward larger customers, which typically involves longer sales cycles.
Despite these short-term challenges, monday.com’s management remains confident about reaching its fiscal year 2027 revenue goal of $1.8 billion and meeting fiscal year 2026 consensus expectations.
The investment firm highlighted that monday.com currently trades at 4.6 times calendar year 2026 enterprise value to sales ratio, which is cheaper than Dropbox at 4.7 times, while monday.com offers 22% growth for 2026 compared to Dropbox’s -1%.
In other recent news, monday.com reported mixed third-quarter results, showing both profit and loss upside but missing on bookings. Despite this, the company managed to beat revenue expectations for the quarter, although it maintained its 2025 top-line guidance, which indicates a softer revenue outlook. Analysts have responded with varied adjustments to their price targets. Needham reiterated its Buy rating with a $250 price target, highlighting the company’s shift in its go-to-market strategy. Canaccord Genuity lowered its price target to $230, citing concerns over the momentum of monday.com’s customer acquisition strategy. Oppenheimer also reduced its price target to $200, despite maintaining an Outperform rating. Meanwhile, DA Davidson held its $275 price target, expressing optimism about future earnings. Piper Sandler adjusted its price target to $275, noting slightly lower growth assumptions and risks from headwinds affecting smaller customer cohorts. These developments reflect a range of perspectives on monday.com’s financial performance and strategic direction.
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