monday.com Ltd. (MNDY) PT Raised to $350 at Goldman Sachs, 'we view this as a solid entry point'

Goldman Sachs analyst Kash Rangan raised the price target on monday.com Ltd. (NASDAQ: MNDY) to $350.00 (from $320.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating and raise out PT to $350 ($320 prior) following F1Q25 results that saw revenue +30% (vs. consensus +27%), OpM of 14% (+500bps vs. consensus), and FCF margin (+900bps vs. consensus). Monday is -1% intraday mainly as investors grapple with a lower-than-average top-line beat magnitude (2.6% vs. 2-year average of 3.5%) and FY25 guidance that, ex. the F1Q beat and currency tailwinds, implies slower F2H25 growth. Nevertheless, we leave with increasing conviction in Monday's multi-product strategy, upmarket momentum, and AI traction, all of which could provide upside to a conservative guidance posture. We highlight the following: 1) Emerging product execution, including with record net adds in Dev (+833 vs. +283 last quarter) and +84% growth in Service accounts (70% of ARR from enterprise and mid-market), 2) Continued success in scaling Monday's upmarket presence, notably reporting an acceleration in $50k+ ARR (+50% vs. +49% in F4Q24) and 100bps of acceleration in both $50k+ and $100k+ NRR (to 116%/117% respectively), and 3) Early emerging AI momentum, with 26mn cumulative AI actions (16mn in-quarter vs. 7mn last quarter). With ramping hiring (planned +30% in FY25) and a new CRO now established (notably with enterprise expertise), we continue to see Monday as well positioned to execute against the significant market opportunity ahead. At ~7x EV/FY26E Sales, a discount to best in-class peers (~9x EV/Sales), we view this as a solid entry point given its strong Rule-of-60+ profile that should support a premium to peers."

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