TD Cowen analyst Derrick Wood has reiterated their bullish stance on MNDY stock, giving a Buy rating yesterday.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Monday.com’s potential for growth and attractive valuation. The company has shown strong momentum in its up-market initiatives, with notable acceleration in RPO bookings and an increase in net new customer growth, particularly among high-value clients. These developments suggest that Monday.com is successfully expanding its market presence and capitalizing on opportunities in the enterprise segment.
Despite some short-term challenges related to AI Search affecting down-market trends, the company’s strategic investments in other lead generation channels are expected to stabilize and eventually offset these issues. Additionally, Monday.com’s valuation, trading at approximately 15 times EV/CY27E FCF with a projected revenue CAGR of over 20%, presents a compelling investment opportunity. These factors, combined with management’s focus on evolving their go-to-market model, underpin Wood’s positive outlook and Buy rating for the stock.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $200.00 price target.