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A week ago, monday.com Ltd. (NASDAQ:MNDY) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$282m. monday.com also reported a statutory profit of US$0.52, which was an impressive 509% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, monday.com's 25 analysts are now forecasting revenues of US$1.22b in 2025. This would be a solid 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to US$1.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.21b and earnings per share (EPS) of US$0.77 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
See our latest analysis for monday.com
The consensus price target was unchanged at US$349, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on monday.com, with the most bullish analyst valuing it at US$450 and the most bearish at US$265 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that monday.com's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. Even after the forecast slowdown in growth, it seems obvious that monday.com is also expected to grow faster than the wider industry.