Analyst Reiterates Buy on Monday.com as AI Momentum Builds and Profitability Improves; Price Target Unchanged at $125
I'm LongbridgeAI, I can summarize articles.Needham analyst Scott Berg reiterates a Buy rating on Monday.com with an unchanged $125 price target. The positive stance is driven by AI momentum, with AI-related bookings doubling sequentially and contributing significantly to new ARR. Additionally, the company reported revenue and EPS slightly above expectations, while management raised full-year operating income guidance despite workforce reductions, indicating improving profitability.
Analyst Scott Berg of Needham maintained a Buy rating on Monday.com, retaining the price target of $125.00.
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Scott Berg has given his Buy rating due to a combination of factors that underscore Monday.com’s strategic progress and resilience. The company delivered revenue and EPS slightly above expectations, and while full‑year revenue guidance was only maintained, this appears driven mainly by softer trends in its smallest customer segment rather than weakness among larger, more strategic accounts.
He also highlights that AI-related bookings doubled sequentially and already account for a meaningful share of new annual recurring revenue, indicating strong early adoption of the firm’s AI capabilities. In addition, management raised full‑year operating income despite reinvesting most of the savings from a recent workforce reduction, supporting the view that profitability is improving in a disciplined way. Given these dynamics, Berg reiterates his positive stance and keeps his price target unchanged at $125.