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McGinnis is Cautious on Monday.com (MNDY) Due to Reduced Guidance, 2026 Growth Concerns

Monday.com Ltd. (NASDAQ:MNDY) is one of the most promising stocks with huge upside potential. On November 11, UBS analyst Taylor McGinnis lowered the firm’s price target on Monday.com to $200 from $215 and kept a Neutral rating on the shares. This sentiment was announced as McGinnis noted that Monday.com’s reduced Q4 2025 guidance is raising concerns about the company’s growth trajectory for 2026.

Earlier for Q3 2025, Monday.com achieved total revenue of $317 million, which was a 26% increase year-over-year. This revenue was also $4.59 million above Street expectations. EPS for the quarter stood at $1.16, which surpassed guidance by $0.28. The company also maintained strong customer loyalty, with Net Dollar Retention at 111% in Q3, a rate expected to remain stable for the entire 2025.

The multi-product strategy is successfully driving growth, with new products now accounting for over 10% of total ARR, which surpassed the company’s 2025 goal ahead of schedule. However, the company’s guidance for the upcoming quarter reflects a more measured approach, sparking some concern over future growth. Q4 revenue guidance is projected to be between $328 and $330 million, which translates to a lower growth of 22% to 23%. Full-year 2025 revenue guidance was set at $1.226 to $1.228 billion, a ~26% growth.

Monday.com Ltd. (NASDAQ:MNDY) develops software applications internationally. The company provides Work Operating System, a cloud-based visual work OS that consists of modular building blocks used to assemble software applications and work management tools.

While we acknowledge the potential of MNDY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MNDY and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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