William Blair analyst Arjun Bhatia has reiterated their bullish stance on MNDY stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors including Monday.com’s strategic shift towards leveraging AI to transform its platform from merely managing work to executing it. This evolution is expected to bring about increased automation and efficiency, leading to a higher return on investment for customers. Additionally, the introduction of a consumption-based pricing model for AI capabilities aligns pricing with the value delivered, which is anticipated to address concerns related to seat-based pricing.
Furthermore, Monday.com has set a revenue target of $1.8 billion by 2027, suggesting a 20% growth rate, which Bhatia considers conservative as it does not factor in potential AI contributions. The company’s strong profitability profile and the promising outlook for AI-driven growth contribute to the attractive risk/reward profile of the stock. Bhatia believes that the stock is a good buy, particularly during periods of market weakness.
Bhatia covers the Technology sector, focusing on stocks such as Sprout Social, Atlassian, and Similarweb. According to TipRanks, Bhatia has an average return of 3.0% and a 47.65% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $275.00 price target.