Investing.com – Piper Sandler downgraded to Neutral from Overweight and lowered its price target to $85 from $100. The stock currently trades at $63.55, notably below the new target, while InvestingPro’s Fair Value suggests the shares are undervalued at current levels.
The downgrade follows guidance issued during the company’s fourth-quarter call. The company guided fiscal 2026 revenue growth to 18.3% year-over-year, below consensus expectations of 20.5%. This represents a significant deceleration from the company’s 27% revenue growth over the last twelve months. According to InvestingPro Tips, 21 analysts have revised their earnings downwards for the upcoming period, reinforcing concerns about the growth slowdown.
The guidance indicates fiscal 2026 operating margins will contract 2.6 percentage points and free cash flow margin will contract 6.8 percentage points. Foreign exchange is expected to create a 1-2 percentage point headwind.
Performance marketing headwinds have driven higher customer acquisition costs for small and medium-sized business customers. The company withdrew its fiscal 2027 targets after providing them last fall.
Monday.com has launched tools including magic, vibe, and sidekick in 2025, and recently launched Agentalent.ai, a hiring platform for enterprise AI agents. Despite near-term headwinds, the company maintains an impressive 89% gross profit margin. For deeper insights into MNDY’s financial health and access to exclusive Pro Research Reports covering 1,400+ US stocks, visit InvestingPro.
In other recent news, monday.com has seen several adjustments to its stock price targets by various analyst firms. Morgan Stanley lowered its price target for monday.com to $115 from $200, maintaining an Overweight rating, indicating continued confidence in the company’s long-term potential. Cantor Fitzgerald also reduced its price target to $95 from $148, citing expectations of lowered forecasts for 2026 and 2027 and a deceleration in revenue growth. DA Davidson adjusted its target to $100 from $150, driven by concerns over demand trends within the small and medium-sized business sector, yet maintained a Buy rating.
KeyBanc Capital Markets decreased its price target to $140 from $220 following a downward revision of growth expectations, while still keeping an Overweight rating. Guggenheim set a new price target at $180, down from $250, due to concerns about margins despite revenue growth aligning with investor expectations. The company’s recent earnings report and guidance for 2026 have prompted these revisions, with analysts expressing varying levels of confidence in monday.com’s future performance.
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