Michael Berg, an analyst from Wells Fargo, maintained the Buy rating on Monday.com (MNDY – Research Report). The associated price target remains the same with $340.00.
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Michael Berg has given his Buy rating due to a combination of factors, primarily viewing Monday.com’s recent stock pullback as an attractive entry point. Despite concerns about potential weakness in the EMEA region affecting Q4 and FY25 guidance, Berg believes these worries are exaggerated and sees a healthy opportunity for growth driven by new product cycles.
The achievable Q4 setup, with estimates showing moderate growth, alongside positive feedback from partners and limited concerns about the EMEA backdrop, supports Berg’s optimistic outlook. The initial FY25 guidance is seen as reasonable, with potential for upside beyond the market’s expectations. Additionally, Monday.com’s valuation is aligned with high-growth software peers, offering attractive growth prospects in large markets, further justifying the Buy rating despite existing macroeconomic challenges.
In another report released on January 29, J.P. Morgan also maintained a Buy rating on the stock with a $350.00 price target.