Investment firm UBS began its coverage of Monday.com (NASDAQ:MNDY) with a Neutral rating and a price target of $175. The firm said that MNDY has a revenue upside of 38% year-over-year in 2023, but revenue growth may drop to the high-20% range over the next three years. Analysts Taylor McGinnis and Daniela Campo noted that the shares of the Project management software company were already valued higher than its peers and added that given its superior growth, it is fairly valued.
According to the analysts, the Collaborative Work Management segment of the software industry may soon lose steam. They estimate a 10% drop from the 30% historical growth as competition in the sector picks up. They also point to 2025 as a recovery point but said the market is “somewhat” commoditized. Furthermore, the analysts mentioned that the impact of generative AI on the segment is still unknown. However, they predict that it will benefit from the rise of the technology.
What is the Target Price for Monday.com Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MNDY stock based on 10 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average MNDY price target of $208.09 per share implies a 42.82% upside potential.
