DA Davidson has lowered its target price for monday.com Ltd. (NASDAQ: MNDY) to $150 from $250, but the firm kept a Buy rating on the work management software provider’s shares.
The research note from DA Davidson comes as monday.com prepares to report fourth-quarter results for its fiscal 2025 year on February 9. The firm said it trimmed its fiscal 2026 projections after identifying lengthening sales cycles in recent customer interactions.
DA Davidson noted that the stock has already seen a sharp decline from its 52-week peak of $342.64, with the current share price at $98 representing a roughly 71% drop from that high. The firm also observed that monday.com shares have fallen 34% year-to-date amid market concerns about the company’s future growth path - a market viewpoint DA Davidson explicitly disputes while maintaining its Buy stance.
In customer checks, DA Davidson described feedback on some of monday.com’s newer product lines as "less constructive," singling out the company’s Service offering as receiving mixed adoption signals. By contrast, the firm said customers continue to hold the core work management platform in high regard, viewing that product positively.
Importantly, DA Davidson reported that the customers it surveyed showed no appetite for developing bespoke, in-house solutions as substitutes for monday.com’s core product. That lack of migration to custom builds was noted as supportive of the company’s established value proposition.
Despite the tempered near-term outlook, monday.com’s revenue growth remains significant: the company reported 28.6% top-line growth over the past twelve months, according to the analysis cited by DA Davidson.
InvestingPro analytics referenced in the research note indicate that the stock appears undervalued relative to a calculated Fair Value and shows a favorable PEG ratio of 0.4, implying the market valuation may not fully reflect the company’s growth potential.
Other brokerages have adjusted their targets ahead of the same quarterly release. Canaccord Genuity reduced its target to $190 and suggested monday.com may need to lower growth expectations for 2026. Cantor Fitzgerald moved its target to $148, highlighting mixed results in upmarket expansion and competitive pressures within larger accounts. BofA Securities set a $157 target and expressed concern that revenue guidance for 2026 could fall short of market expectations. KeyBanc Capital Markets cut its target to $220 while maintaining an Overweight rating, noting that the upcoming quarterly report and guidance will be particularly consequential.
Collectively, these revisions reflect a more cautious tone among analysts as monday.com approaches its earnings release, even as several firms continue to rate the shares positively.
As the company readies its fourth-quarter results, investors will likely focus on any commentary about sales cadence, adoption levels for newer products such as Service, and the company’s revenue guidance for fiscal 2026. Market participants will also be watching whether management’s outlook aligns with the trimmed estimates from research teams and whether recent customer feedback signals a durable change in go-to-market dynamics.
Given the range of analyst target adjustments and the sharp decline from the prior 52-week high, monday.com remains a closely watched security among software and cloud investors ahead of the February earnings report.