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On Monday, Needham analysts increased the price target for monday.com Ltd. (NASDAQ: MNDY) shares to $400 from the previous $350, while maintaining a Buy rating on the stock. The adjustment follows monday.com’s robust fourth-quarter results, which were driven by notable enterprise growth and consistent demand in the United States. With an impressive revenue growth of 33.9% and an industry-leading gross profit margin of 89.46%, according to InvestingPro data, the company’s performance has been remarkable. Demand in the rest of the world (ROW) remained stable, and the anticipated weakness in Europe was not as pronounced as expected.
monday.com’s performance was particularly strong with larger customers, and the company also saw significant expansion among existing clients. This was evidenced by the impressive number of new customers that contribute more than $50,000 and $100,000 in annual recurring revenue (ARR). With a market capitalization of $16.36 billion and trading near its 52-week high, InvestingPro analysis suggests the stock is currently trading above its Fair Value. The company’s recent general availability (GA) announcement of its Service application has shown promising initial results, boasting the highest average contract value (ACV) and cross-selling outcomes among monday.com’s suite of applications.
The launch of monday.com’s AI vision was also highlighted, showcasing the integration of Artificial Intelligence in its platform through Building Blocks and the forthcoming introduction of Agents/Digital Workforce. These developments are expected to further drive the company’s growth and innovation.
Looking ahead, monday.com has provided revenue guidance for the fiscal year 2025 that surpasses expectations. This optimistic forecast has been issued without the need to adjust for the potential foreign exchange headwinds of 100-200 basis points, which suggests a recovery from the initial weakness seen in European markets.
The revised $400 price target by Needham is based on rolling their valuation forward, anticipating high growth in the vicinity of 20% for the fiscal year 2026.
In other recent news, several investment firms have updated their stance on monday.com following the company’s recent earnings report. DA Davidson raised its price target for monday.com from $300 to $350, maintaining a Neutral rating. Analysts noted the company’s strong quarter performance and optimistic outlook for 2025, despite a transition in its Chief Revenue Officer role.
Simultaneously, Canaccord Genuity increased its price target for monday.com to $375 from $310, retaining a Buy rating. The firm highlighted the company’s robust growth potential, nearly 90% gross margins, and a model that capitalizes on elastic performance-based marketing spend.
On the other hand, Barclays (LON:BARC) maintained its Overweight rating on monday.com with a $325 price target. The firm acknowledged the company’s strong financial performance and the introduction of new AI pricing strategies that are expected to contribute to a strong outlook for fiscal year 2026.
Citi also upheld a Buy rating and a $298 price target on monday.com. The firm noted the company’s robust financial results for the fourth quarter of 2024, surpassing consensus estimates with increases in revenue, EBIT, billings, and free cash flow.
Lastly, TD Cowen reduced its price target for monday.com to $300 from $325, but continued to recommend the stock as a Buy. The firm noted the persisting demand decline in the EMEA region but highlighted that the demand in the United States remains strong.
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