Jefferies Assigns Buy Rating to monday.com (MNDY)

monday.com Ltd. (NASDAQ:MNDY) is one of the best software application stocks to buy according to Hedge Funds.

On January 15, Jefferies analyst Brent Thill maintained his Buy rating for monday.com Ltd. (NASDAQ:MNDY). He forecasted a price target of $260 for the stock, which results in an upside of 96% from the prevailing level.

Thill noted a 41% dip in share price for monday.com Ltd. (NASDAQ:MNDY), over the last 1 year. The stock currently trades at an EV/Sales multiple of 3.5x, which appears to be reasonably cheap. Beyond these valuation figures, what also makes the stock attractive are growth and innovation prospects, strong liquidity, 27% FCF margin, and solid cash reserves that make up for 25% of the company’s market capitalization.

On December 23, Citi analyst Steve Enders also reaffirmed his Buy rating for monday.com Ltd. (NASDAQ:MNDY). Although he lowered his price target estimates from $319 to $293, it still gives investors a lucrative upside potential of 121%.

Enders’ rating and the downward revision of the target price are part of Citi’s broader outlook on software application stocks, following their meetings with company managements. According to the firm, many companies are presently witnessing stable yet uncertain demand trends. But there has been some relief for businesses after the reopening of the U.S. government.

Monday.com Ltd. (NASDAQ:MNDY) is a software application developer that operates a cloud-based visual Work Operating System. This platform contains modular building blocks that are used for creating software applications and scaling workflows for enterprises. It delivers customized work management tools for efficient management of processes and projects.

While we acknowledge the risk and potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MNDY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.