Here’s Why UBS Analysts Lowered Monday.com’s (MNDY) Price Target to $93

Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the top mid-cap AI stocks to consider for investment by hedge funds [1] - UBS analyst Taylor McGinnis has lowered the price target for monday.com from $140 to $93, maintaining a Neutral rating, which suggests a potential upside of 25.49% from current levels as of February 11 [1] - The price target adjustment was influenced by the company's fourth-quarter earnings report, which indicated significant margin pressure [1] Financial Performance - For Q4, monday.com reported revenue of $333.9 million, representing a year-over-year increase of 24.6%, and exceeding consensus estimates by $4.24 million [2] - Non-GAAP earnings per share for the quarter were $1.04, surpassing estimates by $0.12 [2] - The company generated $59.7 million in net cash from operating activities and $56.7 million in adjusted free cash flow, both of which decreased from $76.7 million and $72.7 million in the same quarter of the previous year [2] - The number of paid customers increased across all segments [2] Future Guidance - For Q1 2026, monday.com anticipates revenue between $338 million and $340 million, slightly below the consensus estimate of $342.87 million, indicating approximately 20% year-over-year growth [3] - Non-GAAP operating income is expected to be between $37 million and $39 million, with an operating margin projected at 11% to 12%, factoring in a negative foreign exchange impact of 100 to 200 basis points [3] Company Overview - monday.com develops software applications globally, including in the United States, Middle East, Europe, United Kingdom, and Africa [4] - The company's product offerings include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, primarily serving educational institutions, government entities, and various business units [4]