On Wednesday, Canaccord Genuity maintained a Buy rating on monday.com Ltd. (NASDAQ:MNDY (NASDAQ:)) and increased its stock price target to $250 from the previous $220. This adjustment follows a notable rise in the company’s shares, which have rebounded sharply, almost erasing their recent decline.

The firm’s shares are currently trading at approximately 8.5 times enterprise value to revenue (EV/R) and less than 40 times enterprise value to free cash flow (EV/FCF) based on 2025 estimates.

monday.com, known for its high gross margins nearing 90%, operates with a business model that allows for significant control over its profitability. The company’s go-to-market (GTM) spending is primarily driven by performance-based marketing, which can be adjusted according to market signals. This flexibility provides the firm with the ability to quickly respond to changing market conditions.

The analyst highlighted monday.com’s potential for growth in the multi-product adoption space. With the opportunity for new product introductions in the coming years, the company is expected to see continued positive developments. Moreover, the analyst anticipates that pricing will positively impact the company’s financial metrics over the next few quarters.

Canaccord Genuity’s stance is that the intermediate-term news flow for monday.com is likely to remain favorable. The firm’s position suggests that monday.com is a stock that software growth investors should retain in their portfolios. The analyst’s outlook is based on the company’s solid fundamentals and potential for future product expansion.

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