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Investing.com - KeyBanc has reiterated its Overweight rating and $330.00 price target on monday.com Ltd. (NASDAQ:MNDY), maintaining its positive outlook on the work management platform provider. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $215 to $450.
The reiteration follows a period of volatility for monday.com shares, which experienced a significant drop in late 2024 and early 2025 due to concerns about potential weakness in European markets and revenue growth expectations. The stock has declined 42.83% over the past six months and currently trades near its 52-week low of $171.54.
Despite market fears that 2025 revenue growth might only reach the low-20% range, monday.com ultimately provided guidance of approximately 26% growth, which exceeded expectations and drove shares up 26.5% following the announcement. The company maintains impressive gross profit margins of 89.42%, and InvestingPro analysis indicates 11 analysts have recently revised their earnings estimates upward.
KeyBanc’s analysis indicates that monday.com’s core Work OS product has shown acceleration over the past six months, while growth in new products has slowed, suggesting current guidance relies on continued Work OS acceleration.
The firm believes recent share price resets have been overdone, stating investors are "more than compensated for the risks" associated with the company’s current position and growth trajectory.
In other recent news, monday.com reported mixed second-quarter results, with a revenue growth of 27%, slightly surpassing expectations but falling below the average beat from previous quarters. Analysts from Wolfe Research highlighted that while the company showed strength in upmarket segments, it faced challenges in downmarket segments due to changes in Google (NASDAQ:GOOGL)’s algorithm and search trends. Morgan Stanley (NYSE:MS) upgraded monday.com’s stock rating to Overweight, recognizing the company’s strategic shift toward a multi-product approach and a sales-led growth model, despite lowering the price target to $260. Needham maintained a Buy rating with a $250 price target, noting that monday.com’s reliance on Google is expected to diminish in the future. TD Cowen also maintained a Buy rating but lowered its price target to $290, citing the company’s performance in the small and medium-sized business sector. Piper Sandler reduced its price target to $300, suggesting that the recent sell-off was excessive and recommending investors consider buying. These developments reflect a nuanced outlook on monday.com, with analysts adjusting their price targets while acknowledging both the company’s challenges and strategic shifts.
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