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MNDY Stock Has a Case of the Mondays—Buy Before the Rebound
MarketBeat· 2025-08-11 22:36
Core Viewpoint - Monday.com's recent stock price decline is viewed as a temporary reaction to less-than-ideal news, influenced by high short interest, and does not reflect the company's long-term potential [1][2]. Financial Performance - The company reported a solid Q2 with revenue growth of nearly 27% year-over-year, outperforming MarketBeat's consensus by over 100 basis points [4][6]. - Q2 results showed a sequential slowdown in growth, but the overall performance was better than expected, with Q3 guidance meeting market expectations [3][4]. - The full-year revenue growth forecast has been improved to approximately 26%, which is 200 basis points above the consensus [4]. Client and Business Growth - Client growth increased by 8%, while existing business saw an 11% rise, particularly driven by the company's largest client groups, which grew by 36% and 46% respectively [5]. Margin and Earnings - The adjusted operating margin contracted by 100 basis points, with adjusted EPS at $1.09, reflecting a 16% year-over-year increase, which is significantly better than market expectations [6]. Stock Forecast and Valuation - Current stock price is $174.13, with a 12-month price forecast of $341.27, indicating a potential upside of 95.99% [7]. - The stock is trading below analysts' low-end estimates, suggesting a minimum upside of 50% and potential for a 75% gain at consensus [9]. Institutional Support - Institutions own about 75% of the stock, providing a solid support base, with buying activity noted as of mid-Q3 2025 [8]. - Analysts are increasing coverage and price targets, indicating strong sentiment and deep value in the stock [8]. Price Support Levels - The stock has shown strong support near the $200 level, with historical price upswing patterns indicating potential for a rebound and new long-term highs within a few quarters [10].