Morgan Stanley Maintains a Buy on monday.com (MNDY), After Q2 Report

monday.com Ltd. (NASDAQ:MNDY) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 11, monday.com Ltd. (NASDAQ:MNDY) released results for its fiscal second quarter of 2025. The company topped Wall Street estimates with revenue of $299.01 million, ahead by $5.43 million, and EPS of $1.09, ahead by $0.23. However, the share price has fallen more than 29% since the release, mainly due to the challenges related to AI search changes.

Recently, on August 21, Josh Baer of Morgan Stanley maintained a Buy rating on monday.com Ltd. (NASDAQ:MNDY), retaining the price target of $260. The analyst acknowledged the recent drop in the stock after the Q2 results. However, he views this as a good chance to invest at a lower price, taking confidence from the company’s solid growth potential.

He highlighted that analysts are debating if the company can keep growing at over 20%. Baer noted that after talking with investors and the company’s investor relations team, he is optimistic that the challenges related to AI search are only temporary. He believes that the company has the potential to grow and expand its market reach through its product line-up. Lastly, the stock is cheaper than many competitors, thereby presenting an attractive entry point as per analyst Baer of Morgan Stanley.

monday.com Ltd. (NASDAQ:MNDY) is a software company that offers a cloud-based platform for creating custom applications and project management tools.

While we acknowledge the potential of MNDY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.