Monday.com Ltd. (NASDAQ:MNDY) is one of the best upside stocks to buy now. On November 11, Morgan Stanley lowered the firm’s price target on Monday.com to $236 from $260, while maintaining an Overweight rating on the shares. This sentiment amid a stock price fall was because of the company’s earnings beat, which was smaller than expected on an already low bar. Management also did not increase the financial guidance for the full year 2025. However, Morgan Stanley remains highly confident in the long-term i ...

Core Insights - Monday.com Ltd. is viewed as a promising stock with significant upside potential, although recent guidance adjustments have raised concerns about its growth trajectory for 2026 [1][3]. Financial Performance - For Q3 2025, Monday.com reported total revenue of $317 million, reflecting a 26% year-over-year increase and exceeding Street expectations by $4.59 million [2]. - The company's EPS for the quarter was $1.16, surpassing guidance by $0.28 [2]. - The Net Dollar Retention rate stood at 111% in Q3, with expectations for stability throughout 2025 [2]. Guidance and Growth Concerns - The Q4 revenue guidance is projected to be between $328 million and $330 million, indicating a lower growth rate of 22% to 23% [3]. - Full-year 2025 revenue guidance is set at $1.226 to $1.228 billion, representing approximately 26% growth [3]. - The multi-product strategy is driving growth, with new products contributing over 10% to total Annual Recurring Revenue (ARR), surpassing the company's 2025 goal ahead of schedule [3]. Company Overview - Monday.com develops software applications internationally, offering a cloud-based Work Operating System that consists of modular building blocks for software applications and work management tools [4].

Core Insights - Monday.com Ltd. is recognized as one of the top enterprise software stocks to buy, despite a recent price target reduction by Piper Sandler from $300 to $275 while maintaining an Overweight rating [1][3] Financial Performance - For Q2 2025, Monday.com reported total revenue of $299 million, reflecting a year-over-year growth of 27% [2] - The company's net income for Q2 was $58.3 million, resulting in a diluted net income per share of $1.09 based on 53.3 million shares outstanding [2] Business Strategy and Growth - The enterprise segment is the fastest-growing area for Monday.com, achieving a record number of new customers paying over $100,000 annually [3] - The company's multi-product strategy has led to the Monday CRM platform reaching $100 million in annual recurring revenue (ARR) [3] - Customer adoption of AI capabilities has accelerated, with users performing 46 million AI-driven actions since the feature's launch [3] Company Overview - Monday.com develops software applications across various regions including the US, Europe, the Middle East, Africa, and the UK, providing a cloud-based visual Work Operating System for creating software applications and work management tools [4]