Investing.com -- Morgan Stanley initiated coverage of monday.com with an Equal-weight rating saying the software firm’s shift toward larger enterprise clients and a broader product lineup presents a significant opportunity but comes with added execution risks.
The brokerage said monday.com’s track record of strong growth and market fit positions it well as it looks to scale beyond its core offering.
The company recently surpassed $1 billion in annual recurring revenue and is now pushing to evolve into a multi-product platform targeting larger customers through a more sales-driven strategy.
Morgan Stanley (NYSE:MS) noted that the company may also explore acquisitions in the future, marking a shift from its historically organic growth model.
While acknowledging monday.com’s performance has outpaced many peers, the firm said its current valuation already reflects much of the potential upside.
The stock trades at about 34 times enterprise value to free cash flow, in line with high-growth software peers.
With shares trading at 9x estimated 2026 sales and a modest discount on growth-adjusted metrics, “we see moderate upside to our $330 price target,” the analysts wrote, adding that the risk-reward profile supports a neutral stance.