Analyst Derrick Wood from TD Cowen reiterated a Buy rating on Monday.com and keeping the price target at $290.00.
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Derrick Wood’s rating is based on several compelling factors that suggest a positive outlook for Monday.com. The company has set a target for over 20% revenue growth annually through FY27, coupled with significant margin improvements. This growth is supported by their innovative AI developments such as Copilots, Agents, and Vibe Coding, which are expected to enhance their product offerings and drive revenue. Additionally, Monday.com’s valuation appears attractive, with a low EV/FCF/Growth multiple compared to peers.
Furthermore, the company’s strategic initiatives include the introduction of new AI-powered products like Campaigns and the Agent Builder, which are already being utilized by a significant portion of their customer base. The management’s guidance for FY27 is considered conservative, with expectations for higher margins and a robust financial position. These factors, combined with efforts to optimize customer acquisition channels and deepen market penetration, underpin Wood’s optimistic Buy rating for Monday.com.
In another report released today, Barclays also maintained a Buy rating on the stock with a $258.00 price target.