Monday.com, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen maintained a Buy rating on the stock and has a $125.00 price target.
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Derrick Wood has given his Buy rating due to a combination of factors, starting with Monday.com’s ability to deliver solid topline growth and outperform revenue expectations, even if recent beats are narrower than in prior periods. He acknowledges that guidance for revenue, operating margin, and free cash flow is more conservative, reflecting foreign-exchange headwinds and ongoing turbulence in performance marketing, particularly around paid search and AI-driven changes in customer acquisition.
At the same time, he emphasizes that Monday.com’s move upmarket is gaining meaningful traction, as shown by robust large-customer metrics, stronger retention in higher-spend cohorts, and increasing cross-sell potential across its expanding product portfolio. With the stock trading at a notably low revenue and free-cash-flow multiple relative to its growth profile, he views the current valuation as overly punitive, creating an attractive entry point for investors who can look beyond near-term go-to-market disruptions and toward emerging AI-related product catalysts in the coming years.