Canaccord downgrades Monday.com stock rating on slowing growth
Canaccord downgraded monday.com (MNDY) to Hold, lowering its price target to $90. The stock has dropped 54% in a year. Q3 revenue grew 19%, beating estimates, but growth is slowing. Guidance for Q4 shows a further slowdown to 14%. Management cited internal and market challenges. Oppenheimer also cut its target but kept an Outperform rating, noting profitability improvements but growth uncertainties.
How this was made
The 30-second read
Why it matters
The downgrade signals a shift in analyst sentiment, potentially prompting short‑term selling and a reassessment of valuation multiples.
Market read
Analyst downgrade with a new price target is a fresh catalyst that can move the stock and influence peer sentiment.
What to watch
Strong Q3 profitability and high gross margins may cushion the stock against short‑term pressure.
Background
Canaccord's downgrade follows Monday.com's Q3 results, which beat earnings expectations but showed slower growth and a weaker outlook for Q4.
Ticker impact
Canaccord downgraded Monday.com to Hold and cut its price target to $90, citing slowing growth and weaker Q4 revenue guidance.
likely pressure as the market prices in the slower growth outlook and reduced target.
Analyst downgrade with a concrete new price target is a fresh catalyst that typically triggers sell‑side activity.
Market effects
The downgrade may weigh on other SaaS and workflow‑automation peers as growth concerns spread.
Impact is primarily on US‑listed tech stocks; no broader regional effect noted.
Limited to investors tracking the collaborative‑software sector.
Counterpoint
If the AI‑first strategy gains traction faster than expected, the downgrade could be premature.
Key entities
- companyMonday.com Ltd.
Cloud‑based work operating system provider (NASDAQ:MNDY).
- analyst_firmCanaccord Genuity
Equity research firm that issued the downgrade.
