DA Davidson reduced its price target for monday.com Ltd. to $100.00 from $150.00 on Tuesday, February 10, 2026, while retaining a Buy rating on the stock. The brokerage made the adjustment after the company released quarterly results that, though profitable, showed signs of softer demand among its SMB customer base.
The company reported diluted earnings per share of $2.24 and maintained strong gross profit margins of 89.2% over the trailing twelve months. Still, DA Davidson flagged that the most recent beat was smaller than typical, a gap the firm attributes to ongoing uncertainty in demand from small and medium-sized customers.
Guidance drove part of the reassessment. Management provided outlook figures below consensus, and DA Davidson reports that monday.com removed a previously stated fiscal year 2027 revenue goal of $1.8 billion, a step that the firm’s analyst Lucky Schreiner highlighted as material to the updated view.
Despite those headwinds, DA Davidson noted positives in the company’s commentary: management expressed confidence about progressing upmarket, stronger-than-expected adoption of AI capabilities, and opportunities from offering multiple products to customers. Those operational strengths contributed to the decision to maintain the Buy rating even as the price target moved down.
Shares reacted sharply to the earnings and outlook update, falling about 22% after the results. DA Davidson observed that the stock now trades at roughly eight times calendar-year 2026 free cash flow, a valuation point the firm cited when explaining why it kept the Buy designation.
Market analysis included in the company review shows the shares are trading near a 52-week low; at the time of the note the stock price was $75.62 and the 52-week low stood at $73.01. Additional analysis indicates the share price has declined 76.23% over the past year and that momentum indicators suggest the security is in oversold territory.
Other broker actions have followed the quarter and revised guidance. Baird downgraded monday.com from Outperform to Neutral and cut its price target to $90.00 from $175.00, citing the company’s 2026 guidance shortfall and the decision to withdraw 2027 targets. Loop Capital moved to downgrade the stock from Buy to Hold and set a new target of $80.00, describing the December quarter as "fine, but not great" and pointing to slowing growth.
KeyBanc Capital Markets reduced its price target to $140 from $220 while maintaining an Overweight rating, reflecting a significant downward revision of growth expectations. Guggenheim trimmed its target to $180 from $250 and kept a Buy rating, pointing to margin concerns despite revenue growth aligning with investor expectations. Canaccord Genuity lowered its target to $140 from $190 and maintained a Buy rating in response to the company’s weaker 2026 guidance.
Taken together, the analyst moves and the stock’s post-earnings price action illustrate the tension between robust profitability metrics and near-term revenue and demand uncertainty, particularly within the SMB segment. Management’s positive language on upmarket traction and AI uptake provides some offset, but revised guidance and the removal of the 2027 revenue target have prompted a re-pricing across several research shops.