Here's Why UBS Analysts Lowered Monday.com's (MNDY) Price Target to $93

monday.com Ltd. (NASDAQ:MNDY) is one of the 12 best mid cap AI stocks to buy according to hedge funds. UBS analyst Taylor McGinnis reduced the firm’s price target on monday.com Ltd. (NASDAQ:MNDY) from $140 to $93 while keeping a Neutral rating on February 10. The firm’s adjusted price target implies a further 25.49% upside from the current levels as of February 11. The price target revision came in response to the company’s fourth-quarter earnings report, which highlighted margin pressure as a major concern.

Monday.com Ltd. (NASDAQ:MNDY) reported its Q4 results on February 9, beating expectations on both revenue and earnings. Revenue for the quarter totalled $333.9 million, up 24.6% YoY, and $4.24 million above the consensus. Non-GAAP earnings per share for the quarter came in at $1.04, exceeding the estimates by $0.12. The company generated $59.7 million in net cash from the operating activities, with $56.7 million in adjusted free cash flow.  Both figures were down from $76.7 million and $72.7 million, respectively, in the same quarter last year. However, the number of paid customers grew across all segments.

For the first quarter of 2026, the company expects revenue to be between $338 million and $340 million. This is slightly below the consensus estimate of $342.87 million and reflects approximately  20% year-over-year growth.  Non-GAAP operating income is anticipated to lie between $37 million and $39 million. The operating margin is projected to be 11% to 12%, assuming a negative foreign exchange impact of 100 to 200 basis points.

monday.com Ltd. (NASDAQ:MNDY) develops software applications across the United States, the Middle East, Europe, the United Kingdom, Africa, and internationally. The company’s product offerings include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms. It mainly serves educational or government institutions, organizations, and distinct business units of an organization.

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.