Monday.com price target lowered to $300 from $325 at Piper Sandler

Piper Sandler lowered the firm’s price target on Monday.com (MNDY) to $300 from $325 and keeps an Overweight rating on the shares. The firm says there are several company-specific levers that continue to give it confidence in Monday.com sustaining 20%-plus growth and 25%-plus free cash flow margin. With that said, two things make the second half of the year growth outlook of 24% optically challenged, Piper notes. First, Q2 marks the first quarter that reported growth slowed below 30%. However, adjusting for the price lift last year, normalized growth was closer to the mid-20s. Second, multi-product momentum implies the core WM ARR might moderate below 20% for the first time. While skeptics think total ARR growth could also fall below 20% next year, the firm thinks that is too pessimistic.