Jefferies Cuts Monday.com Price Target 69% to $80, Downgrades to Hold
Jefferies downgraded Monday.com from Buy to Hold on February 23 and slashed its price target to $80 from $260. Analysts cited ongoing AI-driven risks, hazy prospects in small business and enterprise segments, and potential foreign-exchange, elongated deal-cycle, and infrastructure headwinds.
1. Analyst Downgrade and Target Cut
On February 23, Jefferies downgraded Monday.com from a Buy to a Hold rating and reduced its 12-month price target from $260 to $80, marking a 69% decrease. This sharp adjustment reflects waning confidence in the company’s near-term valuation and growth trajectory.
2. AI-Driven and Other Risks
Analysts highlighted that AI-induced challenges continue to pressure application software stocks, with Monday.com facing ‘hazy’ outlooks across its small business and enterprise divisions. Additional headwinds include foreign-exchange volatility, lengthening enterprise deal cycles, and rising infrastructure and hiring costs.
3. Management’s Revenue Outlook
Despite the downgrade, management projects first-quarter revenue between $274 million and $276 million, representing 26%–27% year-over-year growth, and anticipates full-year free cash flow of $300 million to $308 million, underscoring confidence in underlying business operations.