Analysts have slightly reduced their average price target for monday.com by approximately $3 to around $269, citing a mix of moderated revenue growth projections, higher profit margins, and ongoing concerns about self-service customer trends and evolving search-driven headwinds.
Analyst Commentary
Recent commentary from Wall Street reflects a range of opinions on monday.com's future prospects, influenced by its evolving growth dynamics, recent earnings results, and shifting market conditions. Below, key bullish and bearish takeaways are outlined to summarize the broader sentiment from industry analysts.
Bullish Takeaways- Bullish analysts highlight monday.com's ability to sustain high double-digit top-line growth and healthy free cash flow margins, reinforcing its position among premier growth stocks.
- Recent product launches and momentum in the company’s enterprise and upmarket segments are viewed as sources of durable growth and potential upside for longer-term estimates.
- Despite recent volatility, some believe self-serve headwinds are adequately reflected in the stock's current valuation, which may present a compelling risk-reward for long-term investors.
- Several note that the company’s multi-product strategy, strong execution, and resilient upmarket demand provide flexibility to adjust to market challenges and support forward estimates.
- Bearish analysts express concern over a slowdown in customer additions, with particular weakness observed among small and medium-sized business clients following changes in search algorithms.
- Skeptics point to ongoing pressures in self-serve channels and emphasize uncertainty around future customer growth if recent web traffic trends persist.
- Guidance has become more cautious, with some price targets trimmed due to perceptions of modest revenue upside and management's conservative forecasting.
- There is increased scrutiny on the company's ability to maintain industry-leading growth rates, especially as core revenues in certain areas may moderate below prior thresholds.
What's in the News
- monday.com announced a share repurchase program, planning to buy back up to $870 million worth of its ordinary shares (Buyback Transaction Announcement).
- The company revealed significant product innovations at its Elevate conference. These include the launch of its new AI-powered agent builder, monday agents, as well as new features in monday CRM designed to enhance enterprise productivity (Product-Related Announcement).
- The Board of Directors recently authorized an additional buyback plan on September 15, 2025 (Buyback Transaction Announcement).
- Proggio launched a native integration with monday.com. This enables teams to manage tasks and visualize project timelines more effectively across multiple initiatives (Client Announcement).
- monday.com provided earnings forecasts for Q3 and full-year 2025, projecting year-over-year revenue growth of approximately 24% to 26% (Corporate Guidance).
Valuation Changes
- Consensus Analyst Price Target: Decreased slightly from $272.35 to $269.46, reflecting a modest downward adjustment in fair value estimates.
- Discount Rate: Lowered marginally from 10.77% to 10.74%.
- Revenue Growth: Slightly reduced from 22.06% to 21.52% in updated long-term projections.
- Net Profit Margin: Improved meaningfully from 7.82% to 10.27%, indicating expectations for higher profitability.
- Future P/E: Decreased significantly from 132.44x to 101.02x, suggesting a lower earnings multiple is now applied based on revised forecasts.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.