U.S. stocks edge higher; solid earnings season continues
Investing.com - Piper Sandler maintained its Overweight rating and $325.00 price target on monday.com Ltd. (NASDAQ:MNDY) stock on Monday . According to InvestingPro data, the stock currently trades at $308.50, with analyst targets ranging from $280 to $450, reflecting mixed sentiment on the company’s valuation.
The research firm identified monday.com as one of its "highest conviction growth ideas" to own for the next three to five years in the software sector, citing potential for sustained revenue growth exceeding 20% alongside free cash flow margins above 25%. The company has already demonstrated strong execution with a revenue growth of 32.25% in the last twelve months and impressive gross profit margins of 89.49%.
Piper Sandler highlighted four key drivers supporting its bullish outlook: multi-product adoption approaching 10% of Annual Recurring Revenue (ARR), enterprise segment growth reaching 25% of ARR, mid-market expansion at 30% of ARR, and a differentiated no-code user interface with schemaless database architecture. InvestingPro data reveals that 14 analysts have recently revised their earnings expectations upward, suggesting growing confidence in the company’s execution strategy.
The firm specifically noted monday.com’s technology is "well suited for the AI era" due to its technical architecture, positioning the company favorably within the evolving software landscape.
Piper Sandler’s analysis followed investor meetings in Europe with monday.com investor relations representatives, where discussions focused on SMB demand environment, product adoption trends, sales organization changes, competitive positioning, margin leverage, and growth sustainability.
In other recent news, monday.com has shown robust financial performance, with Goldman Sachs raising its price target for the company to $350, following a 30% year-over-year revenue increase in the first quarter of fiscal year 2025. This surpasses the consensus estimate of 27% and demonstrates a significant improvement in operating margin and free cash flow margins. DA Davidson also raised its price target for monday.com to $325, citing the company’s strong adoption in enterprise and AI segments, and maintained a Buy rating. Similarly, Needham upheld its Buy rating with a $400 target, highlighting growth in high-value customer segments and improved cash flow margins.
Additionally, monday.com has appointed Harris Beber, formerly of Google (NASDAQ:GOOGL) Workspace, as the new Chief Marketing Officer, effective July 3, 2025. Beber brings extensive marketing leadership experience from companies like Waze and Vimeo (NASDAQ:VMEO). The company also announced the appointment of Casey George as Chief Revenue Officer, which analysts believe will support the company’s growth strategy. Furthermore, monday.com has scheduled its annual general meeting for July 31, 2025, in Tel Aviv, where shareholders will vote on various proposals. These developments reflect monday.com’s strategic focus on expanding its market position and leveraging AI for future growth.
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