DA Davidson adjusted its valuation expectations for monday.com Ltd. (NASDAQ: MNDY), lowering the price target to $150.00 from $250.00 while keeping a Buy rating, the firm said on Friday. The stock is trading at $94.17, close to a 52-week low of $94.27. InvestingPro data referenced in the note indicates the shares are undervalued on a Fair Value basis.
The research shop attributed the sizable cut in its target to revised fiscal year 2026 estimates, which the firm trimmed to account for longer sales cycles the work management platform provider is reportedly experiencing. DA Davidson highlighted that recent customer checks were "less constructive" on uptake of monday.com's newer product set, calling out the Service offering as an area where market adoption appears to be lagging.
Even so, analysts at DA Davidson emphasized that monday.com’s foundational work management solution continues to earn favorable customer feedback. The note states that customers view the core product "very positively" and that users show limited interest in building custom alternatives to replace it.
The report also acknowledged the stock's recent performance, noting a 34% year-to-date decline that DA Davidson ascribes to investor concerns the company could stop growing. The firm explicitly disagreed with that view and described the shares as a "straightforward BUY." InvestingPro analysis cited within the coverage points to an RSI that suggests the stock is in oversold territory, and the shares have fallen 64.35% over the past year.
Investors will be focused on the upcoming earnings release scheduled for February 9th, when the company will report results and provide fresh guidance. DA Davidson flagged the quarter and related commentary as the key near-term catalyst to watch for evidence of sales momentum or further confirmation of extended deal timelines.
Other sell-side firms have also adjusted their targets for monday.com in recent sessions, reflecting a range of views about the company's growth trajectory. Guggenheim retains a Buy rating and projects 25% revenue growth for the fourth quarter of 2025, a result the firm expects to exceed both consensus and company guidance. Guggenheim also forecasts 27% full-year revenue growth for FY25, moderating to 23% in FY26.
Canaccord Genuity reduced its price target to $190, citing the need for the company to reset growth expectations for 2026. Cantor Fitzgerald lowered its target to $148, pointing to difficulties in the firm’s upmarket expansion despite traction with smaller enterprise solutions. BofA Securities cut its target to $157 over concerns about potentially lower-than-expected revenue guidance for 2026. KeyBanc Capital Markets adjusted its price target to $220 and emphasized the importance of the coming quarterly results and guidance in shaping the stock's outlook.
The range of recent analyst actions underscores differing assessments about monday.com's near-term growth prospects and the extent to which a slower cadence of sales will affect longer-term trajectory. With the February earnings date approaching, market participants will be looking for clarity on whether the longer sales cycles are a temporary drag on momentum or signal a more sustained reset to the company's growth profile.
What to watch next
- Quarterly results and management guidance on February 9th for signs of sales acceleration or sustained elongation of deal cycles.
- Customer adoption metrics and commentary around the Service product and other newer offerings.
- How the broader analyst community updates forecasts in response to the upcoming quarter and any change in product traction.