On Monday , Tigress Financial Partners increased the price target for monday.com Ltd. (NASDAQ: MNDY (NASDAQ:MNDY)) to $280, while reaffirming a Buy rating on the stock. The firm cited the company’s continued evolution of its Work OS platform, which is enhancing enterprise management capabilities and driving new customer adoption. This progress is reflected in the company's strong financial performance, with Q4 revenue climbing 35% year-over-year to $202.6 million.
The Work OS developer also reported a substantial increase in high-value customers, with the number of clients generating annual recurring revenue (ARR) over $50,000 rising by 56% to 2,295, and those with ARR over $100,000 increasing by 58% to 833. The launch of monday code, a serverless environment allowing developers to create enterprise-ready apps, is expected to further bolster customer engagement by meeting unique requirements while adhering to monday.com's security and compliance standards.
monday.com's product suite continues to exhibit strong cross-selling potential, with 2,534 initial work management accounts adopting one of the company's new products. The initial release of mondayDB 2.0, aimed at enhancing the speed of large dashboards, represents another step in the ongoing development of the Work OS platform. The introduction of new monday AI capabilities, such as the AI Formula Builder and AI Solution Builder, has also begun to show promising results.
The firm highlighted the company's ability to leverage ongoing innovation and product enhancements, which has enabled a broad price increase contributing to additional revenue. With a total addressable market (TAM) close to $40 billion, which is expected to grow to over $70 billion in the next few years, monday.com is well-positioned for significant revenue growth.
The company's scalable business model and strong brand recognition are key factors driving this growth, along with increasing economic cash flow and return on capital. Tigress Financial Partners anticipates that these trends will lead to significant gains in economic profit and long-term shareholder value creation.
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