monday.com Ltd. (MNDY) PT Raised to $112 at Cantor Fitzgerald

Cantor Fitzgerald analyst Thomas Blakey raised the price target on monday.com Ltd. (NASDAQ: MNDY) to $112.00 (from $95.00) while maintaining an Overweight rating.

The analyst commented, "We reiterate our OW rating on MNDY shares and increase our PT to $112 (from $95), driven by multiple expansion in the group and despite mixed checks in 2Q. Checks have remained relatively mixed for a number a quarters and we would highlight the relative stability in churn as a stand out positive. Further, a downgrade doesn't seem warranted given our new PT at 2.5x (1/2 turn multiple expansion) on C27 revenue estimate remains below one-year NTM average EV/S 3.5x multiple, well below the three-year average 7.6x, and a bear case where sales growth slows to 10% in C27 (from 27% C25, 19% C26E) shares have ~11% downside at 1.5x EV/C27E sales and an 8x FCF multiple. Valuation alone is never a reason to remain OW rated, but given software narrative shifts possible in 2H and into C27 (i.e., AI won't replace software completely as a sector), MNDY shares could create relatively significant alpha during initial stages of a sector re-rating given where shares currently trade. Expectations are low and, again, we are not noting a pick up in churn in checks supporting our OW rating at current levels."

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