UBS cuts monday.com stock price target to $310

Published 29/04/2025, 15:40
© Netanel Tobias, monday.com PR

On Monday , UBS analyst Taylor McGinnis adjusted the price target for monday.com Ltd. (NASDAQ:MNDY) shares to $310 from the previous $350 while maintaining a Neutral rating. McGinnis’ assessment came after evaluating the company’s demand following recent tariff news. Partner checks indicated that the tariffs have not yet impacted monday.com’s growth expectations, as the company’s products are seen as aiding efficiency. According to InvestingPro data, the stock currently trades above its Fair Value, with analyst targets ranging from $265 to $450. The company maintains impressive gross profit margins of 89.3% and has shown strong momentum with a 15.5% gain in the past week.

Despite the absence of significant changes in demand, some partners have reported slight elongations in sales cycles and deal delays due to rising uncertainty. Nevertheless, the majority of partners remain optimistic about their growth with monday.com, anticipating either an acceleration or a modest deceleration. Based on these insights, McGinnis decided to keep the first-quarter fiscal year 2025 revenue growth estimate at 29.5% on a constant currency (C/C) basis, as performance was generally seen as meeting or exceeding expectations. This aligns with the company’s strong financial health, as indicated by InvestingPro’s analysis, which shows the company holds more cash than debt and maintains a healthy current ratio of 2.66.

However, the analyst chose to revise the full-year 2025 revenue growth forecast downward to 25% C/C from 27% C/C. This new estimate sits below the company’s guidance of approximately 26.5% C/C. The decision to adjust the forecast was described as a cautious move, taking into account the potential for small and medium-sized businesses (SMBs) to reduce spending in uncertain times, even though no immediate concerns were raised by the partners.

McGinnis emphasized that while the partner checks did not signal any immediate issues with monday.com’s demand, it is possible that the full impact of the current economic environment has not yet been felt. The UBS analyst’s approach reflects a conservative stance in forecasting, acknowledging the risk of changes in spending behavior that could manifest later.

In other recent news, monday.com Ltd. has reported strong financial results for the fourth quarter of 2024, with revenue increasing by 32% year-over-year to $268 million, surpassing several analysts’ expectations. The company’s fiscal year 2024 revenue also climbed 33% to $972 million. Analysts from Tigress Financial and Loop Capital have responded positively to these results, raising their price targets to $450 and $385, respectively, while maintaining Buy ratings. UBS also increased its price target to $350, citing the impressive revenue growth but maintained a Neutral rating due to concerns about the free cash flow margin. Meanwhile, Citi has selected monday.com as a top stock pick, highlighting its growth potential and platform opportunities. In a strategic move, monday.com has appointed Casey George as Chief Revenue Officer to enhance its enterprise market presence. George’s extensive experience in scaling business operations is expected to drive further growth. These developments reflect the company’s robust performance and strategic initiatives aimed at expanding its market reach and customer base.

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