UBS Analysts Lower Monday.com’s Price Target to $93

Monday.com Ltd. (NASDAQ:MNDY) has been identified as one of the top 12 mid-cap AI stocks to consider by hedge funds. UBS analyst Taylor McGinnis recently revised the company’s price target from $140 to $93 while maintaining a Neutral rating on February 10th. This adjustment suggests a potential increase of 25.49% from the current stock price as of February 11th. The reason behind this price target revision was the concern surrounding margin pressure highlighted in the company’s fourth-quarter earnings report.

During the fourth quarter, Monday.com Ltd. (NASDAQ:MNDY) reported revenue of $333.9 million, representing a 24.6% increase from the previous year and exceeding the consensus by $4.24 million. Additionally, non-GAAP earnings per share for the quarter were $1.04, surpassing estimates by $0.12. While the company generated a net cash flow of $59.7 million from operating activities and $56.7 million in adjusted free cash flow, both figures were lower than the same period last year. The number of paid customers in all segments, however, showed growth.

Looking ahead to the first quarter of 2026, Monday.com Ltd. anticipates revenue between $338 million and $340 million, slightly below the consensus estimate. The company expects year-over-year growth of approximately 20%. Furthermore, non-GAAP operating income for the quarter is projected to be between $37 million and $39 million, with an estimated operating margin of 11% to 12%, factoring in a negative foreign exchange impact of 100 to 200 basis points.

Monday.com Ltd. (NASDAQ:MNDY) operates in various regions including the United States, the Middle East, Europe, the United Kingdom, Africa, and internationally, offering products such as monday work management, monday CRM, and more. The company serves educational, government institutions, and business units. Although MNDY presents a promising investment opportunity, some AI stocks may offer greater growth potential with lower risks. For investors seeking undervalued AI stocks benefiting from current economic trends, exploring additional options may be beneficial.

As of now, the company’s stock appears to be in a phase of consolidation and reassessment, potentially influenced by various market factors. While Monday.com Ltd. is a prominent player in the AI industry, investors are advised to evaluate multiple investment opportunities and consider their risk tolerance and investment objectives before committing to any stock. As markets evolve, continuous monitoring and assessment of market conditions and company performance will be crucial for informed decision-making and investment success.