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Investing.com - Needham analyst Scott Berg reiterated a Buy rating and $250.00 price target on monday.com Ltd. (NASDAQ:MNDY) following the company’s Elevate 2025 conference in New York City. The stock, currently trading at $188.39, has seen its price decline by about 27% over the past year. According to InvestingPro data, the company maintains strong financial health with impressive gross profit margins of 89.42%.
The conference, which saw three times the number of registrants compared to the 2023 event, highlighted monday.com’s evolution from a work management tool to an AI-powered work execution platform. The company emphasized its shift from "managing work" to "doing the work" through a multi-product suite powered by AI agents and unified data infrastructure. With a market capitalization of $9.7 billion and strong liquidity metrics, InvestingPro analysis shows the company holds more cash than debt on its balance sheet.
Needham noted monday.com’s new go-to-market strategy, which focuses on multi-product sales through revised pricing and packaging tailored to different customer segments. The firm also highlighted the company’s newly announced two-year revenue growth CAGR of approximately 21%. This aligns with the company’s recent performance, as InvestingPro data shows revenue growth of 30.24% in the last twelve months.
According to Needham, this growth projection aligns with Street expectations but includes minimal embedded impact for potential AI monetization upside. The analyst’s observations suggest room for outperformance if AI features drive additional revenue.
The company also announced a new share buyback program, which Needham believes will drive incremental upside to free cash flow per share growth on a more consistent basis going forward.
In other recent news, monday.com has been the focus of several analyst updates and strategic projections. KeyBanc reiterated its Overweight rating and set a revenue target of $1.8 billion for 2027, which the company described as a base case scenario. This target is below previous analyst estimates, indicating a more conservative outlook. Needham also maintained a Buy rating, setting a $250 price target and noting a reduced reliance on Google for marketing. Meanwhile, TD Cowen lowered its price target to $290, citing mixed second-quarter results with a revenue growth of 27%, which was slightly below expectations. Piper Sandler adjusted its price target to $300, maintaining an Overweight rating and suggesting the recent stock sell-off was excessive. These updates underscore a period of strategic evaluation and market adjustment for monday.com.
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