TD Cowen cuts monday.com stock price target on soft guidance
TD Cowen reduced its price target on monday.com (MNDY) to $95 from $105, citing soft guidance. Q3 revenue beat expectations by 2.3%, but Q4 guidance of 14% missed estimates. Net revenue retention declined to 108%. Multiple analysts lowered price targets, with some downgrading the stock to Hold.
How this was made
The 30-second read
Why it matters
The guidance miss and analyst downgrades are likely to drive short‑term downside, but the company's cash generation remains robust.
Market read
Fresh guidance downgrade and multiple price‑target cuts create a clear near‑term sell signal for MNDY.
What to watch
The company still retains an 88.7% gross margin and a 9% free‑cash‑flow yield, which may support valuation floor.
Background
Monday.com reported Q3 revenue beat and announced weaker Q4 guidance, prompting several analysts to lower price targets.
Ticker impact
TD Cowen cut Monday.com price target to $95 and the company lowered its Q4 growth guidance to 14% versus the Street's 16% expectation.
likely pressure as the market prices in weaker growth outlook and lower price targets
Guidance miss and multiple analysts lowering targets are fresh, material news that typically triggers sell‑offs.
Market effects
Software and SaaS sector may see broader scrutiny as growth guidance softens.
U.S. tech equities could face modest pullback.
Limited to investors tracking cloud‑software and project‑management platforms.
Counterpoint
If the market overreacts, the stock could rebound on its strong cash flow and high gross margins.
Key entities
- analystTD Cowen
Equity research firm that lowered the price target.
- companyMonday.com Ltd.
Project‑management software provider.
