monday.com Ltd. (MNDY): A Bull Case Theory

We came across a bullish thesis on monday.com Ltd. (MNDY) by @bigbullcap on X (Twitter). In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd. (MNDY)’s share was trading at $288.60 as of 23rd May. MNDY’s trailing and forward P/E were 288.60 and 74.63 respectively according to Yahoo Finance.

Was Jim Cramer Right About Otis Worldwide Corporation (OTIS)?

A close-up of a laptop screen displaying cloud platform application software.

DA Davidson upgraded Monday.com (NASDAQ: MNDY) to a Buy rating with a price target of $350, citing the stock’s compelling valuation amid broader software sector weakness. Despite heightened market volatility and concerns over a potential consumer-led recession, Monday.com stands out as a high-quality name likely to demonstrate resilient growth.

The recent multiple contraction across the software space has pushed several strong performers into discounted territory, but DA Davidson believes Monday.com is unlikely to remain undervalued for long. As macro uncertainty continues to weigh on investor sentiment, the firm sees Monday.com as well-positioned to weather the storm, given its robust fundamentals and consistent performance. The upgrade reflects confidence in the company’s ability to maintain growth and expand its market presence, making its current price point a potentially attractive entry opportunity.

Previously, we have covered Monday.com (MNDY) in February 2025 wherein we summarized a bullish thesis by Rijnberk InvestInsights on Substack. The author highlighted the company’s strong Q4 2024 earnings, which exceeded expectations and drove a 26% stock surge. The company posted 33% annual revenue growth, record margins, and robust free cash flow, supported by a rising net retention rate and expanding enterprise adoption. Despite its high valuation, the article argued that Monday’s leading platform, financial strength, and upbeat 2025 guidance positioned it as a compelling long-term investment. Since our last coverage, the stock is up 19.23%.

monday.com Ltd. (MNDY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held MNDY at the end of the first quarter which was 68 in the previous quarter. 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 timeframe. If you are looking for an AI stock that is more promising than MNDY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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