Oppenheimer lowers monday.com stock price target to $300 on mixed outlook

Published 11/08/2025, 20:04
© Netanel Tobias, monday.com PR

Investing.com - Oppenheimer lowered its price target on monday.com Ltd. (NASDAQ:MNDY) to $300 from $350 on Monday while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst targets ranging from $310 to $450.

The software company delivered solid results in its second quarter of 2025, maintaining impressive gross margins of 89.5% and achieving 32.3% year-over-year revenue growth. However, revenue upside didn’t fully translate to stronger third-quarter or full-year 2025 guidance as management adjusts to current market trends.

Enterprise momentum remained strong for monday.com, with the company reporting record net additions of customers with annual recurring revenue exceeding $100,000. These high-value customers maintained a net dollar retention rate of 117%. InvestingPro data reveals 12 additional key insights about MNDY’s growth potential and financial health.

The company faced some challenges, including a slight decline in overall net dollar retention rate to 111% (down 1 percentage point quarter-over-quarter), weakness in low-touch and small-to-medium business customers, and moderated growth in customer relationship management and developer product net additions.

Oppenheimer cited monday.com’s track record of execution and its growing enterprise focus as reasons for maintaining the Outperform rating, despite adjusting estimates based on the latest results and outlook.

In other recent news, monday.com Ltd. reported second-quarter financial results that did not meet expectations, leading to a reduced revenue projection for the second half of the year by $3 million. This shortfall was attributed to higher customer acquisition costs in the small and medium-sized business segment. In response, Needham lowered its price target for monday.com from $400 to $250 but maintained a Buy rating. On a positive note, monday.com has introduced three new AI-powered capabilities designed to enhance productivity and streamline workflow creation. These features include monday magic, monday vibe, and monday sidekick, which are aimed at simplifying business processes. Additionally, Piper Sandler reaffirmed its Overweight rating and $325 price target on monday.com, highlighting its strong growth potential and revenue prospects. The firm views monday.com as a top growth idea in the software sector over the next three to five years. Furthermore, monday.com has scheduled its annual general meeting for July 31, 2025, in Tel Aviv, as announced in a recent SEC filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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