BofA Securities lowered its price objective for monday.com Ltd. (NASDAQ:MNDY) to $157.00 from $195.00 on January 29, 2026, while keeping a Neutral rating on the shares. The new target sits near InvestingPro's Fair Value metric, and comes as the stock trades at roughly $126.15, only modestly above its 52-week low of $123.45.
The bank highlighted a specific concern ahead of monday.com's fiscal fourth-quarter report on February 9 - the possibility that the company will offer initial revenue guidance for 2026 below consensus forecasts. BofA described that scenario as creating a "challenging setup" into the print, noting that conservative guidance could weigh on sentiment in the near term.
At the same time, third-party data from InvestingPro show monday.com delivered robust operating performance over the trailing twelve months, with revenue growth of 28.6% and gross profit margins of 89.2%. Those metrics point to solid underlying business momentum even as investor expectations have been reset.
The stock has suffered significant pressure since the company's third-quarter earnings release, declining about 24% amid what BofA labeled "intensifying AI fears" impacting the broader applications market. Street models currently assume roughly 21% revenue growth for monday.com in 2026. The company's share price has fallen 55% over the prior six months and nearly 50% over the past year, data from InvestingPro indicate, and InvestingPro Tips suggest the shares may be in oversold territory.
BofA's view is that reported revenue growth of 21%-22% for 2026 remains within reach, but the firm expects management to err on the side of caution when setting guidance. The analysts wrote that a high-teens guidance range is more likely at the outset, which could establish room for the company to beat and then incrementally raise expectations across 2026.
In BofA's view, working through what it calls the "wall of worry" - namely downward estimate revisions and investor skepticism - could act as a clearing event. If that clearing takes place following the fourth-quarter report, it might make the shares more attractive to buyers who have been waiting on clearer evidence of sustained recovery.
Other recent analyst activity
- KeyBanc Capital Markets reduced its price target to $220 from $270 and maintained an Overweight rating, emphasizing the importance of the imminent quarterly results and guidance.
- Guggenheim reiterated a Buy rating with a $250 target, anticipating the company will exceed revenue growth expectations for Q4 2025 and fiscal 2025.
- Jefferies kept a Buy rating and a $260 target, calling the stock undervalued relative to peers.
- BTIG began coverage with a Buy rating and a $210 target, noting a 26% revenue increase in Q3 and potential expansion into CRM and Service markets.
- Tigress Financial Partners raised its price objective to $310, citing monday.com's growth and margin profile as supportive of its positioning as an AI-native Work OS leader.
These divergent targets and stances illustrate the range of analyst perspectives on monday.com's growth trajectory and market positioning. While some firms have trimmed targets in light of near-term uncertainty, others continue to project outperformance and have set substantially higher valuations.
Outlook and market context
Investors will be watching monday.com's February 9 earnings release closely for initial guidance and any commentary on product demand, margin trends, and AI-related market dynamics. BofA's actions and the mixed set of price targets from other analysts underscore the degree of uncertainty surrounding near-term expectations even as underlying revenue growth and margins remain strong.
For investors and market participants, the coming quarterly report represents a test of whether management will take a conservative posture that could leave room for upward revisions, or whether guidance aligns with current Street estimates. The degree to which the company navigates investor concerns and potential downward estimate revisions may determine whether the stock stabilizes or continues to face selling pressure.