Analyst Scott Berg of Needham maintained a Buy rating on Monday.com (MNDY – Research Report), with a price target of $230.00.
Scott Berg’s Buy rating for Monday.com is primarily informed by the company’s fourth-quarter results, which, despite being modestly above consensus expectations, showed the slimmest margin of outperformance since the company went public. Berg acknowledges the pressure on the company’s shares, due to a combination of slightly weaker than anticipated Net Revenue Retention and FY24 revenue guidance that did not meet expectations. This was attributed to macroeconomic factors affecting seat expansion, despite an improvement in gross retention.
Nevertheless, Berg remains optimistic about Monday.com’s prospects, highlighting its exceptional sales performance, particularly in attracting significant net new customers with annual spending above $50k and $100k. He also notes the company’s continued focus on growth throughout the coming year. While the FY24 operating margin guidance was somewhat lower than anticipated, Berg maintains confidence in Monday.com’s ability to achieve a free cash flow margin in excess of 20%, alongside a robust 30% year-over-year growth, signaling a strong long-term potential for the company.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $240.00 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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