monday.com Ltd. (MNDY) PT Raised to $400 at Goldman Sachs

Goldman Sachs analyst Kash Rangan raised the price target on monday.com Ltd. (NASDAQ: MNDY) to $400.00 (from $350.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating while raising our PT to $400 ($350 prior) after Monday.com outperformed on all 4Q24 metrics: revenue (+32% yoy vs. consensus 29%), OpM (15% vs. consensus 12%), and FCFM (27% vs. consensus 25%). The stock is +27% mainly as investors digest better-than-expected FY25 guidance (24-26% yoy revenue growth in USD) and abating worries about outsized EMEA weakness. While better-than-feared, we continue to be of the view that the initial guide may prove conservative given it implies a similar net new revenue profile to FY24 despite the multiple sources of revenue upside, including SMB inflection, cross-sell, customer expansion, new products, and AI utilization. The following increases our conviction in Monday’s long-term growth: 1) Tangible momentum in AI usage, with ~10mm total AI actions (vs. ~3mm/~1mm in Q3/Q2) and the introduction of consumption-based pricing for AI Blocks (driving more engagement and free-to-paid conversion), 2) Early Monday Service adoption supports Monday’s multi-product strategy, and 3) Demonstrable upmarket strength, with $100k+ NDR inflecting to 116% and a record number of $100k+ net adds (127 vs. average of 79). Given this success, we expect a new CRO will likely amplify, not disrupt, the company’s GTM strategy. Monday operates with best-in-class unit economics, at a Rule of 60+ profile in FY24, which we believe justifies a premium vs. peers."

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