Monday.com: Discounted Valuation, Resilient Growth, and an Expectations Reset Support Overweight/Buy Rating

Morgan Stanley analyst Josh Baer maintained a Buy rating on Monday.com today and set a price target of $200.00.

Josh Baer has given his Buy rating due to a combination of factors that, in his view, position Monday.com for attractive risk‑reward despite recent share weakness. He highlights that the stock has sold off significantly more than peers over the last several months and now trades at a marked discount on both sales and free cash flow multiples relative to comparable software names. While he expects initial FY26 revenue guidance to come in below current consensus and acknowledges near‑term pressure from longer sales cycles, lower pricing tailwinds, and prior volatility in paid search and top‑of‑funnel demand, he believes these issues are increasingly reflected in the current valuation.

Baer anticipates that Q4 performance will resemble Q3, with solid mid‑20s percentage revenue growth and a modest beat versus expectations, supported by a healthy pipeline and signs that lead‑generation trends are stabilizing after earlier disruptions. He sees strong, ongoing traction in multi‑product adoption and in larger, upmarket customers as key drivers that can support durable growth of 20% or more over time, even if management lowers its long‑term revenue target and sets more conservative FY26 guidance. In his view, a reset of forward expectations via a lower‑than‑consensus outlook is likely to act as a “clearing event,” allowing investors to refocus on the company’s underlying fundamentals rather than near‑term guidance risk. Taken together—discounted valuation, resilient growth drivers, improving funnel dynamics, and the prospect of expectations being reset to more achievable levels—these considerations underpin his decision to maintain an Overweight/Buy recommendation on Monday.com shares.

Baer covers the Technology sector, focusing on stocks such as ServiceTitan, Inc. Class A, Monday.com, and Box. According to TipRanks, Baer has an average return of 4.7% and a 49.63% success rate on recommended stocks.

In another report released yesterday, TipRanks – Google also reiterated a Buy rating on the stock with a $143.00 price target.