Jefferies cuts monday.com stock price target on headwinds
Jefferies reduced its price target for monday.com (MNDY) to $90 from $95, citing operational challenges and slower growth. The company's Q4 revenue guidance missed estimates, though it reported a Q3 earnings beat. MNDY's stock is down 52% year-to-date, trading at $79.93 with a market cap of $3.38 billion. Analysts remain cautious about growth sustainability despite strong gross margins and revenue growth.
How this was made
The 30-second read
Why it matters
The downgrade could trigger short‑term selling pressure, though the stock may find support from its high profitability and AI initiatives.
Market read
Analyst target cuts are a common catalyst for price moves; this update provides a clear actionable signal for traders.
What to watch
Recent earnings beat and record operating income could support a more resilient outlook than the downgrade suggests.
Background
Jefferies' downgrade follows Monday.com's Q3 earnings beat but reflects concerns over slowing growth, longer sales cycles, and a recent 20% workforce reduction.
Ticker impact
Jefferies lowered its price target on Monday.com to $90 from $95 and maintained a Hold rating, citing headwinds and weaker guidance.
likely pressure as the market prices in the reduced target and weaker outlook
The target cut is a fresh analyst action that directly affects valuation expectations.
Market effects
Potential drag on the broader SaaS and workflow‑automation sector as peers may face similar scrutiny.
Limited to U.S. and global tech investors tracking Monday.com.
Modest; primarily relevant to investors with exposure to mid‑cap software stocks.
Counterpoint
The price target cut may be overly pessimistic given Monday.com's strong gross margins and AI‑first strategy.
Key entities
- companyMonday.com Ltd.
Cloud‑based work operating system provider (NASDAQ:MNDY).
- analystJefferies
Equity research firm issuing the price‑target cut.
