Gorodenkoff
Monday.com (NASDAQ:MNDY) stocks plummeted 4% in premarket Wednesday, after Citi downgraded shares to Neutral/High Risk from Buy/High Risk.
Analysts noted that the stock was downgraded after recent conversations with partners and web traffic highlighted slowing demand with a smaller impact on price increases, adding risk to the near-term outlook from what they see as elevated investor sentiment and valuation.
Citi still sees Israel-based monday.com as a leading name compared to competitors in terms of new product (CRM) expansion, G2M efficiency and spend consolidation, particularly in the medium to long term.
However, analysts believe that investors’ expectations regarding the impact of price increases on 2024 growth may be excessive in the near term, leading them to see a more balanced risk-reward versus a premium valuation.
Monday.com (MNDY) has a Hold rating in Seeking Alpha’s Quant Rating system, which consistently beats the market. Meanwhile, the average rating from Seeking Alpha authors is more positive with a Buy, as is the average rating from Wall Street analysts, Buy.