Cantor Fitzgerald Reduces PT on monday.com Ltd. (MNDY) Stock

monday.com Ltd. (NASDAQ:MNDY) is one of the Oversold Software Stocks to Buy Now. On September 17, Cantor Fitzgerald analyst Thomas Blakey reduced the price target on the company’s stock to $257 from $286, while keeping an “Overweight” rating, as reported by The Fly. As per the analyst, the firm noted monday.com Ltd. (NASDAQ:MNDY)’s opportunities from cross-sell and adoption of new AI solutions. Elsewhere, the company highlighted that its Q2 2025 was a strong one, amidst continued revenue growth and rapidly growing demand for its broad product suite, mainly from enterprise customers.

monday.com Ltd. (NASDAQ:MNDY) saw revenue of $299.0 million, reflecting a rise of 27% YoY. The company announced 3 new AI-powered capabilities, i.e., monday magic, monday vibe, and monday sidekick. In Q2 2025, the company achieved a record number of net new adds of customers who are paying more than $100,000 annually, which further validates traction with the enterprise organizations. The company highlighted that monday CRM reached $100 million in annual recurring revenue, demonstrating a strong milestone.

Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Monday.com Ltd. (NASDAQ:MNDY) shares declined following the release of its third-quarter business results. Weakness in shares of the business can be attributed to momentum from a strong second quarter that did not carry through into the third quarter.

The business continues to display healthy top-line growth of over 30 percent. However, revenue beat expectations by a narrower margin than in the second quarter, despite a tailwind from recent price increases. Additionally, guidance was lowered when accounting for the contribution of the recent price increases. Following the results, management also commented that it has been seeing some incremental weakness in Europe, given the weaker macroeconomic environment in key geographies, such as France and Germany, which put further pressure on shares.

We view recent results as within the range of expected outcomes and see several underappreciated tailwinds heading into 2025. We expect the business to sustain growth near 30 percent in 2025, supported by sustained momentum in its core business, continued success from new product launches, and a persistent tailwind from recent price increases. Longer term, we see additional upside potential from Monday’s artificial intelligence-enabled tools, which are not monetized today but may be upsold as add-ons or higher-priced tiers as they prove their value. We think the business’ valuation is attractive at current levels, given our view of sustained above-average growth over the next several years…” (Click here to read the full text)

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.

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