Israeli project management software company Monday.com Ltd. (MNDY.US) saw its shares surge over 10% on Thursday following compelling presentations at its investor day event that energized market analysts. Cantor Fitzgerald analyst Thomas Blakey noted that Monday.com Ltd.'s Elevate conference and subsequent analyst meeting effectively demonstrated the company's capabilities in cross-selling and implementing innovative artificial intelligence (AI) solutions.
In a client report, Blakey stated: "Management discussed search engine optimization (SEO) developments, emphasizing that Google search channels contributed approximately 10% of new annual recurring revenue (ARR). While the company's adjustments to marketing strategies, including development of other digital channels like YouTube, may extend sales cycles, these initiatives are expected to offset pressures from AI developments and Google search algorithm changes. Additionally, this financial update disclosed ARR data across various business segments, not limited to customer relationship management (CRM) operations—according to our calculations, CRM business ARR reached $100 million last quarter, representing a high single-digit percentage of total company revenue. The newly disclosed data aligns with our model predictions, suggesting core work management business ARR will achieve nearly 20% growth in Q2 2025."
Despite lowering Monday.com Ltd.'s price target from $286 to $257, Blakey maintained an "overweight" rating on the stock. He expressed continued confidence in the company's core work management business achieving "robust" double-digit percentage growth. Furthermore, new products are expected to drive company revenue growth acceleration to 20% or higher, while AI business profit potential has not been "fully reflected in current performance outlook."
Piper Sandler analyst Brent Bracelin also expressed optimism about Monday.com Ltd. following the analyst meeting. While he reduced the stock's price target from $300 to $275, he highlighted several positive signals from the conference: first, the company formally set a 2027 revenue target of $1.8 billion; second, significant progress in AI and intelligent autonomous work areas; third, CRM product optimization with increased AI technology implementation; fourth, successful hybrid pricing model implementation.
Bracelin wrote in a client report: "Since reaching 52-week highs, Monday.com Ltd. shares have declined 45%, bringing the company's forward 12-month enterprise value-to-sales ratio and enterprise value-to-free cash flow ratio to 6.5x and 23x respectively, approaching four-year lows. In this context, the stock's risk-reward profile has demonstrated strong attractiveness."