On Wednesday, Goldman Sachs reiterated its Buy rating on monday.com Ltd. (NASDAQ:MNDY (NASDAQ:)), maintaining a price target of $340. The endorsement follows the company’s annual conference, Elevate 2024, which bolstered the firm’s confidence in monday.com’s positioning within the software sector.
The analyst highlighted the company’s effective execution on a large Total Addressable Market (TAM) in emerging products, particularly in the Customer Relationship Management (CRM) space, where the platform is experiencing exponential growth with 9,000 deals closed daily.
Goldman Sachs pointed out monday.com’s expansion in Work Management and focus on product scalability as key drivers for broader deployments and upmarket expansion. The firm also noted the company’s increasing attention to Artificial Intelligence (AI) products, which are expected to enhance customer retention and offer monetization opportunities in the future.
The analyst further mentioned that monday.com’s management has clarified its capital allocation strategy, showing an increased focus on mergers and acquisitions (M&A). The company has been targeting acquisitions of $1 million to $10 million companies that can provide complementary product features to monday.com’s existing portfolio.
Goldman Sachs emphasized that monday.com’s strong execution and unique value proposition provide clear visibility into the company’s potential for significant outperformance in both revenue and profitability. This is expected to occur without a heavy reliance on macroeconomic improvements.
As monday.com continues to navigate through macroeconomic uncertainty with strong pricing power, sustained demand from new customers, and enterprise traction, the firm believes the company is well-positioned to potentially exceed $2 billion in revenue by FY27.
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