Morgan Stanley lowered its price target on monday.com Ltd. (NASDAQ: MNDY) to $115.00 from $200.00 on Tuesday, February 10, 2026, while continuing to carry an Overweight rating on the stock. The revised target represents a 42.5% reduction from the firm's prior valuation and brings the projection closer to InvestingPro's Fair Value assessment.
At the time of the change, monday.com's shares were trading at $74.41, a level the bank and InvestingPro note is about 1.05% above the stock's 52-week low. InvestingPro's data shows a consensus recommendation score of 1.54, indicating a generally bullish analyst sentiment even as the share price has fallen 76.23% over the past year.
Morgan Stanley emphasized that the stock could respond to "positive estimate revisions, as soon as next quarter," noting that it views monday.com at roughly 1.5 times enterprise value to calendar year 2027 sales. The firm also highlighted a PEG ratio of 0.13, a metric suggesting the company may be undervalued relative to its growth profile under current expectations.
The broker cited several potential growth catalysts for the company: momentum in upmarket and multi-product offerings, continued market share gains within Core Work OS, and the planned monetization of AI features in 2026. Those initiatives, Morgan Stanley said, build on monday.com's reported financial strengths including an 89.2% gross profit margin and year-over-year revenue growth of 26.75%.
Despite the sizeable downward revision to its price target, Morgan Stanley maintained confidence in the company's long-term prospects, stating these factors collectively "can drive outperformance" from the current depressed share-price level. The firm noted monday.com's reported levered free cash flow of $313.28 million and a projected EPS of $4.15 for fiscal 2026 as indicators of underlying financial strength amid recent equity weakness.
Other analysts adjusted their valuations for monday.com following the company's most recent earnings report and guidance update. Cantor Fitzgerald reduced its target to $95, citing expectations for lower forecasts in 2026 and 2027 and a projected revenue growth deceleration from 18% to 16%. DA Davidson trimmed its price target to $100, pointing to uncertain demand trends among the company's small and medium-sized business customer base.
KeyBanc Capital Markets lowered its target to $140, reflecting monday.com's significant downward revision of growth expectations and projecting 18.3% growth for 2026. Guggenheim set a new price target of $180, flagging margin concerns even as revenue growth aligns with expectations. Canaccord Genuity also cut its target to $140, referencing lower guidance for 2026 that was broadly anticipated by market consensus.
Taken together, the analyst revisions signal a more cautious stance across several brokerage research desks, even as some firms continue to identify growth levers and maintain favorable ratings. The company's metrics cited by Morgan Stanley - high gross margins, robust revenue growth, substantial levered free cash flow and a fiscal 2026 EPS projection - remain part of the argument that monday.com could outperform should estimates begin to move higher.
For investors weighing the updated valuations, the mix of sizeable price-target reductions and maintained positive ratings underscores a divided view: analysts have become more conservative on near-term guidance, while still recognizing structural and product-driven opportunities that could support the stock in the future.
Note: The article reports analyst price-target changes and company metrics as stated by the respective firms.