BTIG initiates monday.com stock coverage with Buy rating, $210 target

Investing.com - BTIG initiated coverage on monday.com Ltd. (NASDAQ:MNDY) with a Buy rating and a $210.00 price target on Wednesday. The target represents a significant upside from monday.com’s current price of $150.14, which is trading near its 52-week low of $141.20 and well below its 52-week high of $342.64.

The research firm highlighted monday.com’s strong growth trajectory, noting the company’s 26% revenue growth in Q3 and projected free cash flow margins of 27% for fiscal year 2025. This aligns with InvestingPro data showing impressive 28.62% revenue growth over the last twelve months and exceptional gross profit margins of 89.17%. BTIG also pointed to significant total addressable market expansion opportunities in CRM and Service segments.

BTIG analyst Allan Verkhovski expressed the view that market concerns regarding AI-driven Google SEO impact and recent financial results are overblown. The firm emphasized that monday.com’s new products are scaling rapidly, with Annual Recurring Revenue from these offerings reaching $133 million, representing 10% of total revenue and growing 84% year-over-year.

The research note highlighted monday.com’s accelerating go-to-market strategy with enterprise product bundles and solution selling aimed at increasing multi-product adoption and retention rates among customers.

BTIG expressed confidence in management’s fiscal year 2027 revenue target of $1.8 billion, representing a 21% two-year compound annual growth rate, citing accelerating metrics in the previous quarter, AI monetization potential, and differentiated new solutions like Campaigns and Vibes as factors supporting a favorable risk/reward profile. InvestingPro analysis suggests monday.com is currently undervalued with a "GOOD" overall financial health score. With 17 analysts revising earnings upward and a consensus Strong Buy rating, monday.com is among 1,400+ US equities featured in comprehensive Pro Research Reports that transform complex data into actionable intelligence.

In other recent news, monday.com Ltd. has seen several updates from analysts regarding its stock price targets and ratings. Tigress Financial Partners raised its price target for monday.com to $310, maintaining a Buy rating, due to the company’s strong position in the AI-native Work OS sector and its appealing growth and margin profile. Guggenheim also initiated a Buy rating with a $250 price target, emphasizing monday.com’s shift to a sales-led, multi-product strategy aimed at upmarket customers. KeyBanc Capital Markets reiterated an Overweight rating with a $270 price target, following the company’s CFO’s clarification on revenue guidance, expressing confidence in achieving $1.8 billion by 2027.

Meanwhile, DA Davidson lowered its price target from $275 to $250, maintaining a Buy rating, due to a lower-than-expected earnings beat attributed to longer sales cycles and economic uncertainties. TD Cowen also reduced its price target to $250 from $290, citing challenges in the down-market segment related to AI Search technology. These developments reflect a mix of optimism and caution among analysts regarding monday.com’s future performance.

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