Citigroup Has Lowered Expectations for monday.com (NASDAQ:MNDY) Stock Price

Key Points

• Citigroup lowered its monday.com price target from $154 to $132 while maintaining a Buy rating, implying approximately 51% upside from the stock’s $87.15 price.
• Analyst sentiment remains broadly positive but mixed: monday.com has a consensus “Moderate Buy” rating and an average target of $124.25, although several firms recently reduced targets or moved to Neutral.
• monday.com exceeded quarterly earnings and revenue expectations, with revenue up 21.9% year over year, but weaker-than-expected third-quarter guidance and restructuring concerns have pressured the stock.

monday.com (NASDAQ:MNDY - Get Free Report) had its target price reduced by equities researchers at Citigroup from $154.00 to $132.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 51.47% from the stock's current price.

Other equities research analysts have also recently issued reports about the company. Cantor Fitzgerald cut monday.com from an "overweight" rating to a "neutral" rating and decreased their price target for the company from $112.00 to $90.00 in a report on Monday. Piper Sandler restated a "neutral" rating and issued a $90.00 price objective on shares of monday.com in a report on Monday. Wells Fargo & Company decreased their price target on shares of monday.com from $130.00 to $120.00 and set an "overweight" rating for the company in a research report on Tuesday. TD Cowen reiterated a "buy" rating and set a $110.00 price objective on shares of monday.com in a research note on Tuesday. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of monday.com in a research report on Thursday, June 11th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $124.25.

monday.com Trading Down 1.7%

Shares of MNDY traded down $1.47 during mid-day trading on Tuesday, reaching $87.15. The company's stock had a trading volume of 997,796 shares, compared to its average volume of 1,997,949. monday.com has a 52 week low of $57.50 and a 52 week high of $220.80. The company's fifty day moving average price is $80.61 and its two-hundred day moving average price is $79.34. The stock has a market cap of $4.46 billion, a PE ratio of 37.86, a P/E/G ratio of 4.66 and a beta of 1.24.

monday.com (NASDAQ:MNDY - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported $1.48 earnings per share for the quarter, topping analysts' consensus estimates of $1.14 by $0.34. The company had revenue of $364.62 million during the quarter, compared to analyst estimates of $355.55 million. monday.com had a net margin of 9.17% and a return on equity of 5.10%. monday.com's revenue for the quarter was up 21.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.09 earnings per share. Research analysts anticipate that monday.com will post 1.59 EPS for the current year.

Institutional Trading of monday.com

Several institutional investors and hedge funds have recently made changes to their positions in MNDY. Capital World Investors grew its stake in shares of monday.com by 91.4% in the 4th quarter. Capital World Investors now owns 3,286,461 shares of the company's stock valued at $484,950,000 after purchasing an additional 1,569,198 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of monday.com by 93.3% in the 1st quarter. Renaissance Technologies LLC now owns 2,181,990 shares of the company's stock worth $150,797,000 after buying an additional 1,052,900 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in shares of monday.com by 15.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,274,910 shares of the company's stock worth $188,126,000 after purchasing an additional 165,996 shares during the period. Baillie Gifford & Co. boosted its position in monday.com by 2.2% during the 4th quarter. Baillie Gifford & Co. now owns 723,655 shares of the company's stock worth $106,783,000 after purchasing an additional 15,377 shares during the period. Finally, State Street Corp raised its holdings in shares of monday.com by 3.8% during the 4th quarter. State Street Corp now owns 688,751 shares of the company's stock valued at $101,632,000 after buying an additional 25,009 shares during the period. 73.70% of the stock is owned by hedge funds and other institutional investors.

monday.com News Roundup

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com reported second-quarter adjusted earnings of $1.48 per share, above the $1.14 analyst consensus, while revenue rose 21.9% year over year to $364.6 million and exceeded expectations. Operating margins expanded, and AI product annual recurring revenue reportedly doubled from the prior quarter as enterprise adoption grew. monday.com Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Several analysts maintained bullish views after the results. TD Cowen reaffirmed its Buy rating with a $110 price target, while BTIG Research reiterated Buy with a $105 target, suggesting meaningful potential upside based on their estimates. Analyst Ratings Report
• Neutral Sentiment: Wells Fargo retained an Overweight rating but lowered its price target from $130 to $120. Piper Sandler also reaffirmed Neutral with a $90 target, reflecting continued confidence in the business but caution regarding near-term growth.
• Negative Sentiment: The main catalyst weighing on MNDY is third-quarter revenue guidance of $368 million to $370 million, below the $372.8 million consensus estimate and implying slower growth of roughly 16% to 17%. Investors viewed the outlook as more important than the quarterly beat. monday.com Stock Drops as Weak Q3 Outlook Overshadows AI Progress
• Negative Sentiment: Capital One downgraded monday.com from Overweight to Equal Weight and set a $95 price target. The company’s restructuring, including a reported workforce reduction of about 20% to refocus on AI and enterprise customers, adds execution uncertainty. Full-year revenue guidance was reportedly reaffirmed rather than raised, further disappointing investors after the earnings beat.

About monday.com

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com's visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company's product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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