Monday.com (NASDAQ:MNDY) showcased strong artificial intelligence momentum and new product growth at Elevate 2025, even as near-term revenue guidance weighed on shares.
Expanding AI tools, enterprise adoption, and underpenetrated products position Monday.com for sustained long-term growth despite margin pressures.
Goldman Sachs analyst Kash Rangan reiterated a Buy rating on Monday.com, with a price forecast of $270.
Also Read: Monday.com Extends AI Push, Grows Big-Client Base — Market Unimpressed
Rangan rerated the stock after the company’s A-Day and Elevate 2025 user conference. Despite the stock dropping 4% as investors reacted to a revenue CAGR outlook of +21% through fiscal 2027—below its historical ~30% growth pace—and margin pressures tied to AI-related compute costs, the analyst maintained confidence in the company’s long-term growth trajectory.
He pointed to several reasons for optimism. First, Monday’s expanding AI suite—Monday Agents, Monday Sidekick, Monday Magic, and Monday Vibe—has gained traction among SMB customers, who value seamless AI integration across workflows. Second, new go-to-market efforts under a recently appointed Chief Revenue Officer (CRO) will likely accelerate the company’s shift upmarket, with larger accounts ($50K+, $100K+, $500K+) becoming a bigger revenue share and boosting retention. Third, newer product lines like CRM, Service, and Dev remain under 10% of revenue with minimal penetration in the 250,000+ customer base, leaving ample room for expansion.
Rangan also highlighted encouraging the adoption of Monday’s AI products. Monday agents, expected in the first half of 2026, will let businesses build no-code autonomous agents; Monday vibe will allow app creation via natural language; Monday sidekick has already logged 45,000+ interactions; and Monday magic generated 2,000+ workflow solutions in its first three months. Together, these products are transforming Monday from a work management hub into the operational core for AI-driven enterprises, the analyst said.
Customer conversations at Elevate confirmed intense satisfaction with the platform’s ease of use and integrations, though some flagged pricing complexity in AI consumption credits, he noted. Still, most customers expressed intent to expand usage across multiple products and AI features.
The analyst underscored Monday’s low penetration in enterprise—currently less than 1% of its installed base—as a significant growth driver, particularly as digital transformation accelerates. He argued that Monday’s move upmarket could improve unit economics by shifting sales and marketing spend from performance marketing to solution-led enterprise sales.
With 20%+ revenue growth and 30%+ free cash flow margins expected, Rangan concluded that investors underestimate Monday’s ability to compound growth over the mid-term.
Rangan projected fiscal 2025 revenue of $1.23 billion and EPS of $4.13.
MNDY Price Action: Monday.Com shares were up 7.36% at $202.25 at the time of publication on Thursday. The stock is trading within its 52-week range of $166.22 to $342.64, according to Benzinga Pro data.
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