Jefferies analyst Brent Thill maintained a Buy rating for Monday.com Ltd. on January 15. He set a price target of $260, representing a potential 96% increase from current levels.
Thill noted the stock has declined 41% over the past year. It trades at an EV/Sales multiple of 3.5x, which he described as reasonably cheap. The analyst highlighted the company's growth and innovation prospects, strong liquidity, 27% free cash flow margin, and cash reserves amounting to 25% of market capitalization.
Earlier, on December 23, Citi analyst Steve Enders also reaffirmed his Buy rating for Monday.com. He lowered his price target from $319 to $293, still suggesting a 121% upside potential for investors.
Enders' assessment followed Citi's broader review of software application stocks after meetings with company managements. The firm observed many companies are experiencing stable but uncertain demand trends. Some relief has emerged following the U.S. government reopening.
Monday.com Ltd. develops a cloud-based visual Work Operating System. The platform uses modular building blocks to create software applications and scale enterprise workflows. It provides customized work management tools for process and project management.