• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Baird begins coverage of Monday.com with $250 target and neutral rating: Is it worth investing??

by July 23, 2024
written by July 23, 2024

On July 23, Baird initiated coverage of Monday.com Ltd (NASDAQ: MNDY) with a neutral rating and a $250 price target, indicating a potential upside of 6.4% from its current trading price. 

This cautious stance reflects Baird’s recognition of Monday.com’s strengths, particularly its versatile platform and strategic moves into enterprise markets, including its offerings in sales CRM and development tools.

Baird’s rating aligns with a broader evaluation of work collaboration tools, positioning Monday.com favorably among competitors like Asana and Atlassian’s Jira. 

Recently, Wolfe Research also initiated coverage with an outperform rating and a more optimistic $300 price target, citing Monday.com’s strategic advantages and potential for significant growth over the next three years. 

Wolfe’s positive outlook is supported by the company’s innovative products and solid operational margins, projecting a growth rate exceeding 30%.

However, the enterprise software market faces macroeconomic headwinds, as noted by Piper Sandler, which has recently lowered price targets across various software stocks. 

Despite these broader sector challenges, Monday.com remains a high-conviction pick, demonstrating resilience and potential amidst market volatility.

Financial performance and growth prospects

Monday.com’s recent financial performance reinforces its growth narrative. For the latest quarter, the company reported a Non-GAAP EPS of $0.61, surpassing expectations by $0.21, with a revenue growth of 33.6% year-over-year. 

Looking ahead to Q2 2024, Monday.com expects revenues between $226 million and $230 million, reflecting continued strong performance and surpassing analyst expectations. 

The company’s guidance is underpinned by a robust pipeline of new products and a strategic focus on securing larger enterprise accounts.

The company is scheduled to announce its Q2 2024 results on August 12, 2024, with high expectations for a GAAP EPS of $0.03, a significant improvement from the previous year’s negative $0.15 EPS. 

Revenue estimates for Q2 2024 are pegged at $229.11 million, up from $175.7 million in Q2 2023, indicating substantial year-over-year growth.

Operational highlights and strategic positioning

Monday.com has evolved from a task management tool to a comprehensive solution encompassing sales CRM, development operations, and potential expansions into customer service. 

This diversification positions the company as a leader in collaborative work management, particularly appealing to larger enterprise clients.

The company’s strategic pricing adjustments have been a critical growth driver. 

While there are risks associated with potential increased churn due to price hikes, Monday.com’s expansion into new verticals and enhanced product offerings suggest a well-balanced approach to scaling the business. 

Continued product innovation and feature improvements help attract and retain a diverse customer base.

Valuation and technical analysis

Monday.com’s valuation reflects its high growth potential and market positioning. Analysts believe that the company’s strategy of scaling into new areas and enhancing its platform justifies its premium valuation, particularly given its strong free cash flow margins and operational efficiency.

From a technical perspective, Monday.com’s stock has experienced significant volatility. 

After peaking at $450 shortly after its 2021 IPO, the stock dropped to around $80 but has since rebounded to over $250.

MNDY chart by TradingView

However, it has struggled to trade above $240, having tested this level multiple times this year.

Investors should approach with caution. Bulls should wait for a weekly closing above the recent swing high of $251.48 before initiating new long positions. 

Conversely, bearish investors might find a low-risk entry if the stock closes below its 50-day moving average, which it has maintained since its Q1 results in May. 

A close below this level would signal a bear phase, with potential support near the recent swing low of $180 for profit-taking.

The post Baird begins coverage of Monday.com with $250 target and neutral rating: Is it worth investing?? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Long ACN: strong bullish momentum backed by strategic acquisition and AI-driven revenue growth prospects
next post
Short MEDP: revenue shortfall indicate bearish trend for medpace holdings, inc.

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Fox streaming service to be called Fox One, launch before NFL season

    May 13, 2025
  • US inflation cools to 2.4% in March as jobless claims rise, easing market jitters

    April 11, 2025
  • Trump proclaims that ‘wokeness is dead,’ calls to permanently ban sex changes for minors

    March 5, 2025
  • Appeals court will not block partial release of special counsel Jack Smith’s Trump report

    January 10, 2025
  • Chipotle stock dips 14% as CEO Brian Niccol moves to Starbucks: Is it a buy?

    August 14, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • A ‘man-made disaster’ could make it trickier to buy or sell a home in some areas this fall, real estate expert says

    August 26, 2024
  • Tesla Stock Prediction 2025: Growth, Prospects, and Risks

    August 12, 2024
  • Blue Origin to lay off 10% of workforce as it ramps up rocket production

    February 14, 2025

Recent Posts

  • CIA director blasts Democrat’s ‘offensive line of questioning’ about Hegseth’s ‘drinking habits’

    March 26, 2025
  • DAVID MARCUS: Big-brained Ramaswamy, Musk pick fight they can’t win

    December 28, 2024
  • Pro-life father whose home FBI raided appeals ruling by ‘activist’ judge: ‘Faulty investigation’

    April 19, 2025

Editor’s Pick

  • Tlaib ally mourns assassination of top Hamas leader: ‘His martyrdom is not in vain’

    July 31, 2024
  • EURGBP and EURCHF: EURCHF falls under pressure to daily low

    July 29, 2024
  • Biden still regrets dropping out of 2024 presidential race, believes he could have beaten Trump: report

    December 28, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock