KeyBanc Capital Markets has reduced its price target on monday.com Ltd. (NASDAQ: MNDY) to $140 from $220 but left its Overweight rating intact. The stock last traded at $77.63, close to its 52-week low of $73.01.
The adjustment in KeyBanc's target follows a significant reset in monday.com's growth guidance. The company now projects revenue growth of 18.3% at the midpoint for fiscal 2026, a marked deceleration from the prior 26.75% growth rate it had guided to earlier.
In a research note, KeyBanc analyst Jackson Ader characterized the guidance revision as "painful," emphasizing that the company has walked away from a previously announced $1.8 billion revenue target for 2027 that had been set only months earlier. The market reacted strongly: the stock fell 23.68% over the past week.
Despite the weaker near-term outlook, KeyBanc highlighted aspects of monday.com's financial profile that it views as constructive. The firm described the business as "a high-growth, multi-product story valued among the lowest in its peer group." Supporting metrics show gross profit margins of 89.2% and a PEG ratio of 0.31, metrics which analysts point to when arguing the shares may be undervalued at current levels. A fair value assessment referenced by analysts indicates the stock appears to trade below intrinsic value.
KeyBanc's choice to maintain an Overweight stance suggests the firm retains confidence in the company's longer-term prospects, even as it trims expectations for the immediate future. Technical measures cited by market watchers place the shares in oversold territory, which some investors may interpret as a potential buying opportunity for those with a longer investment horizon.
Recent quarterly results offered a mixed picture. Revenue beat expectations by roughly 1.5%, or $5 million, but profitability remained under pressure, with margins of 13% reported for the quarter. The combination of a narrow beat on top-line and persistent margin weakness has prompted several analysts to revise their views.
- Guggenheim lowered its price target to $180, citing margin concerns.
- Canaccord Genuity reduced its target to $140, noting that the new guidance aligns more closely with market expectations despite lower 2026 forecasts.
- Baird downgraded the stock from Outperform to Neutral and set a new target of $90, pointing to the withdrawal of the 2027 target as an important factor.
- Loop Capital moved to Hold with a $80 price target after observing modest revenue growth in what is typically a stronger quarter.
- Wolfe Research kept an Outperform rating but cut its target to $95, citing mixed results and ongoing operational challenges.
Taken together, these analyst actions reflect a more cautious stance across the sell-side in response to the company's revised outlook and continuing margin pressure. The near-term narrative centers on slower growth and profitability recovery, while the longer-term debate hinges on whether high gross margins and a low PEG ratio translate into a tangible valuation recovery.
Investors assessing monday.com will weigh the downside risk from subdued near-term growth against the company's product breadth and reported margin profile. With the stock trading near its 52-week low and technical indicators signaling oversold conditions, outcomes will depend on whether management can reaccelerate revenue growth and address margin headwinds.
Key data points summarized in this report:
- KeyBanc price target: lowered to $140 from $220; rating: Overweight.
- Current share price: $77.63; 52-week low: $73.01.
- 2026 growth guidance: 18.3% at the midpoint (down from prior 26.75%).
- Abandoned 2027 revenue target: $1.8 billion previously announced.
- Recent weekly share decline: 23.68%.
- Reported gross profit margin: 89.2%; PEG ratio: 0.31.
- Recent quarter: revenue beat by 1.5% ($5 million); margin: 13%.