Analyst Scott Berg of Needham maintained a Buy rating on Monday.com, retaining the price target of $250.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Scott Berg’s rating is based on a combination of factors that reflect Monday.com’s evolving business strategy and future growth potential. The company is currently transitioning its go-to-market approach, moving away from its previous Google PLG sales motion to explore other channels that may take longer to mature but promise access to larger customer bases. This strategic shift has temporarily impacted revenue guidance for the fourth quarter, but the modest upside in the third quarter suggests potential for future growth.
Despite the short-term challenges, management remains optimistic about the company’s pipeline, particularly with larger and more stable customers, which is expected to strengthen customer acquisition trends by early 2026. Additionally, new pricing and bundling strategies are anticipated to boost expansion sales activity, with management already observing customers utilizing these product bundles. Furthermore, while free cash flow margins for fiscal year 2025 are expected to remain flat, reduced hiring needs in fiscal year 2026 could lead to significant growth in free cash flow, supporting the positive outlook.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $200.00 price target.