Goldman Sachs Raises Price Target for monday.com to $340 Following Strong Q2 Results

Goldman Sachs analysts raised the price target for monday.com (NASDAQ:MNDY) to $340 from $300 while maintaining a Buy rating. This comes after monday.com reported strong second-quarter 2024 results, continuing its trend of exceeding expectations across key metrics. As a result, shares rose more than 14% today.

Goldman Sachs highlights growing investor confidence in several areas: an anticipated inflection in net revenue retention (NER) for the second half of the year, with a sequential increase already observed; strengthened momentum in the upmarket segment, where NER in the $100K+ annual recurring revenue (ARR) cohort improved by 100 basis points to 114%, supported by the company’s largest deal deployment to date; and robust execution in growth initiatives, with notable customer count increases in CRM and development products.

The positive reception to monday.com’s pricing, evidenced by record-high gross retention, and the company's best-in-class growth profile under the Rule of 60+, further bolster the bullish outlook. As monday.com gears up for the release of Monday Service and its upcoming user conference, Elevate, the analysts anticipate that the company will continue driving pipeline conversion and expanding its strategic software offerings.

Operating strongly against its mid-term targets, monday.com is seen as a rare example of a company capable of consistent outperformance, with visibility into future success that does not rely heavily on macroeconomic improvements.