DA Davidson Downgrades Monday.com to Buy with $275 PT from $325.

DA Davidson Downgrades Monday.com to Buy with $275 PT from $325.

DA Davidson has lowered its price target on monday.com Ltd. (NASDAQ:MNDY) to $275.00, down from $325.00, while maintaining a Buy rating on the stock [1]. The stock has seen a significant decline, dropping over 30% in the past week and trading near its 52-week low of $173.20. The firm cited weakness in new demand from small and medium-sized businesses (SMBs) as a primary factor for the adjustment, attributing this softness to changes in Google (NASDAQ:GOOGL)’s Search algorithm that affected customer acquisition [1].

Despite the price target reduction, DA Davidson noted that monday.com reported a solid quarter, though with a slightly lower than typical beat compared to previous performance periods. The company raised its guidance following the results, but the increase was less substantial than the size of the quarterly beat [1]. DA Davidson characterized the market’s reaction to monday.com’s results as excessive, while expressing continued optimism about the company’s multi-product opportunity and strategic efforts to move upmarket to larger enterprise customers [1].

In other recent news, monday.com Ltd. reported its second-quarter financial results for 2025, which showed solid performance. However, revenue guidance for the third quarter and full year did not meet expectations. The company faced challenges in the SMB segment, leading to higher customer acquisition costs and a $3 million reduction in second-half revenue projections [1]. As a result, Needham lowered its price target on monday.com to $250 from $400, while maintaining a Buy rating. Similarly, Oppenheimer adjusted its price target to $300 from $350, keeping an Outperform rating due to a mixed outlook [1].

Despite these challenges, monday.com has been making strides in innovation by launching three new AI capabilities designed to improve productivity and workflow creation. These features include monday magic, monday vibe, and monday sidekick, which aim to streamline operations for users. Additionally, Piper Sandler reiterated its Overweight rating with a $325 price target, highlighting monday.com as a top growth prospect in the software sector. The firm emphasized the potential for sustained revenue growth and strong free cash flow margins [1].

Meanwhile, Needham maintained a Buy rating and a $400 price target based on positive feedback from a monday.com partner, who expressed optimism about the company’s Customer Work Management product and upcoming DB 3.0 release [1].

References:
[1] https://uk.investing.com/news/analyst-ratings/da-davidson-lowers-mondaycom-stock-price-target-to-275-on-smb-weakness-93CH-4214322