Monday.com (MNDY – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst David Hynes from Canaccord Genuity maintained a Buy rating on the stock and has a $310.00 price target.
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David Hynes has given his Buy rating due to a combination of factors that present Monday.com as an attractive investment opportunity. Despite some recent volatility in the stock price and a slight reset in revenue growth expectations, the company appears well-positioned for the future. The anticipated growth is primarily driven by increasing accounts with 10 or more users, which significantly contribute to the annual recurring revenue.
Additionally, the net revenue retention rate has shown improvement, suggesting stronger customer retention and expansion possibilities. The company’s strategy to implement price increases is expected to yield substantial revenue benefits, while the potential for new product cross-sell opportunities also presents an upside. Considering these factors, along with a relatively safe outlook on free cash flow margins, Hynes believes that even if Monday.com guides below consensus, the stock may still perform well, justifying the Buy rating.
Hynes covers the Technology sector, focusing on stocks such as Zeta Global Holdings Corp, ServiceNow, and Atlassian. According to TipRanks, Hynes has an average return of 10.1% and a 56.02% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $355.00 price target.