William Blair analyst Arjun Bhatia has maintained their bullish stance on MNDY stock, giving a Buy rating yesterday.
Arjun Bhatia has given his Buy rating due to a combination of factors that showcase Monday.com’s solid performance and future potential. Despite the presence of macroeconomic headwinds, Monday.com’s fourth-quarter results exceeded consensus expectations, evidencing the company’s ability to outperform even during uncertain times. The conservative guidance for 2024, suggesting a 27%-28% growth, is interpreted as a strategic under-promise based on Monday.com’s history of surpassing initial projections, like in 2023 when the company beat every quarter and ultimately achieved a 41% annual growth. This historical trend, along with the company’s strong execution track record, underpins the Buy rating.
Furthermore, the robust growth in enterprise customer segments and the expected stabilization of net retention rates contribute to the positive outlook. The anticipated revenue uplift from recent price increases, new product contributions, and the launch of Monday Service signal incremental growth opportunities. Additionally, Monday.com’s efficient operation, exemplified by an expected 22% free cash flow margin in 2024, positions it as a ‘generational software platform’ and a long-term winner in the sector. These fundamental strengths, coupled with the stock’s attractive valuation compared to its peers, reinforce Bhatia’s optimistic stance on the company’s growth drivers and the sustainability of its growth trajectory.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $277.00 price target.
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Monday.com (MNDY) Company Description:
Monday.Com Ltd is a project management tool that enables organizations to manage tasks, projects, and teamwork. It provides solutions such as Project Management, Marketing, Sales and CRM, Task Management, Software Development, Construction, Creative Production, Remote Work, HR, IT, among others.
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