Goldman Sachs maintains Buy rating on monday.com, lowers PT to $270.

Goldman Sachs maintains Buy rating on monday.com, lowers PT to $270.

Goldman Sachs has maintained its Buy rating on Monday.com Ltd. (NASDAQ: MNDY) while lowering its price target to $270. The investment bank cited recent developments and market conditions to justify the adjustment. Despite the price target reduction, Goldman Sachs remains optimistic about the company's long-term prospects.

In its latest report, Goldman Sachs noted that Monday.com's stock has been significantly impacted by the recent decline in new demand from small and medium-sized businesses (SMBs), attributed to changes in Google's (NASDAQ: GOOGL) Search algorithm. This has led to a reduction in customer acquisition costs, which has been a primary factor in the stock's recent performance.

Despite the challenges faced by the company in the SMB segment, Goldman Sachs highlighted the company's strong financial position, with more cash than debt on its balance sheet. The firm also noted that Monday.com has been making strides in innovation, launching three new AI capabilities designed to improve productivity and workflow creation. These features, including monday magic, monday vibe, and monday sidekick, aim to streamline operations for users.

The company's recent quarterly earnings report showed solid performance, with earnings per share of $1.09 exceeding the estimated $0.84 in Q2 2025. However, the stock experienced a significant drop due to cautious Q3 revenue guidance and a projected decrease in operating margin. The company projected Q3 revenue to be between $311 million and $313 million, slightly below the midpoint of analyst expectations.

Despite these challenges, Goldman Sachs maintains a positive outlook on Monday.com's future, noting the company's potential for sustained revenue growth and strong free cash flow margins. The firm emphasized the company's strategic efforts to move upmarket to larger enterprise customers.

Reference List:
[1] https://uk.investing.com/news/analyst-ratings/da-davidson-lowers-mondaycom-stock-price-target-to-275-on-smb-weakness-93CH-4214322
[2] https://site.financialmodelingprep.com/market-news/monday-com-surpasses-q2-earnings-expectations-but-faces-stock-decline
[3] https://www.marketbeat.com/instant-alerts/mondaycom-nasdaqmndy-hits-new-12-month-low-time-to-sell-2025-08-11/