Monday.com stock price target lowered to $250 from $290 at TD Cowen

Investing.com - TD Cowen has lowered its price target on monday.com Ltd. (NASDAQ:MNDY) to $250 from $290 while maintaining a Buy rating on the stock. The downgrade comes as monday.com shares have declined 13.73% over the past week and 40.26% in the last six months, currently trading at $169.40.

The firm cited short-term crosscurrents in the company’s business, particularly noting choppiness in the down-market segment due to continued top-of-funnel challenges from AI Search technology.

Despite these challenges, TD Cowen highlighted several positive indicators, including growth acceleration in RPO (Remaining Performance Obligation) bookings and improvements in $50k+ NDR (Net Dollar Retention) metrics.

The firm also noted an uptick in net new customer growth, which it believes will "pay strong dividends" in the mid-term for monday.com’s business performance.

TD Cowen emphasized that at approximately 15 times EV/CY27E FCF (Enterprise Value to Calendar Year 2027 Estimated Free Cash Flow) against revenue CAGR targets exceeding 20%, monday.com’s valuation remains "highly compelling" despite the reduced price target. While the company trades at a high P/E ratio of 154.65, InvestingPro analysis suggests monday.com is currently undervalued. InvestingPro offers 11 additional tips and a comprehensive Pro Research Report for MNDY, providing deeper insights into what really matters for smarter investing decisions.

In other recent news, monday.com has been the focus of several analyst revisions following its latest financial disclosures. The company reported a smaller-than-expected revenue beat of $5 million, which is below its previous four-quarter average. This has led Piper Sandler to lower its price target for monday.com to $250, while BofA Securities adjusted its target to $195, citing softer-than-expected revenues in the third quarter of 2025. Jefferies also reduced its price target to $300 due to the company’s decision not to raise its full-year revenue guidance for the first time in its history.

Additionally, Needham has reiterated its Buy rating with a $250 price target, recognizing the company’s ongoing adjustments in its go-to-market strategy. Canaccord Genuity lowered its price target to $230, noting challenges in monday.com’s customer acquisition strategy, although they acknowledged the company’s strong performance in the up-market sector. Despite these adjustments, monday.com continues to navigate changes in its sales strategy, which has impacted its revenue forecasts and analyst expectations.

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