Monday.com Ltd (MNDY) shares surged 5.09% in pre-market trading on Tuesday, defying a series of price target cuts from multiple analysts. The stock's resilience appears to be driven by Morgan Stanley's unexpected upgrade and the overall bullish sentiment maintained by Wall Street analysts.

Despite the wave of price target reductions, including cuts from UBS, Citigroup, and Piper Sandler, investors seem to be focusing on the positive aspects of recent analyst reports. Morgan Stanley's decision to upgrade Monday.com from Equal-Weight to Overweight, albeit with a reduced price target of $260 from $330, has particularly caught the market's attention. This upgrade suggests that the investment bank sees significant upside potential in the stock despite near-term challenges.

The average price target for Monday.com now stands at $279, according to analysts polled by FactSet. While this represents a decrease from previous targets, it still implies substantial upside from current trading levels. The majority of analysts maintain a "Buy" rating on the stock, underscoring their confidence in the company's long-term prospects. As the market digests these mixed signals, Monday.com's stock performance today indicates that investors are leaning towards optimism, focusing on the company's growth potential rather than immediate headwinds.