Monday.com is the IBD Stock Of The Day as shares of the enterprise software company surge after its recent investor day event. MNDY stock hit a buy point Thursday after a lengthy consolidation period.
The Tel Aviv, Israel-based company earned positive marks from Wall Street analysts for the Dec. 6 investor day presentation. On Thursday, investment bank JPMorgan added MNDY stock to its Analyst Focus List.
Monday.com makes work management software. Its "work operating system" offers a low code-no code platform that allows organizations to easily build project management tools and software applications.
JPMorgan analyst Pinjalim Bora on Thursday reiterated his overweight, or buy, rating on Monday.com. He raised his 12-month price target on MNDY stock to 220 from 190 and added it to the firm's U.S. Equity Analyst Focus List as a growth idea.
MNDY Stock Breaks Out
On Thursday, MNDY stock broke out of a 22-week consolidation pattern at a buy point of 189.15, according to IBD MarketSmith charts. The 5% buy zone extends to 198.61, based on IBD trading principles.
In afternoon trading on the stock market today, Monday.com stock rose 5.7% to 191.80.
However, an alternative chart analysis showed a handle buy point of 185.81 within the larger consolidation. MNDY stock cleared that aggressive buy point shortly after the opening bell.
Additionally, in a positive sign, the relative strength line for MNDY stock is surging higher as it outperforms the S&P 500 index.
Monday.com Has 'Executed Flawlessly'
JPMorgan's Bora cited the company's "durable and profitable growth" for his bullish take.
Monday.com "has executed flawlessly in the last 12 months … despite a choppy macro backdrop," Bora said in a client note.
At its investor day, Monday.com highlighted a "baseline plan" to increase sales at a compound annual growth rate of 30% through 2025.
Meanwhile, Goldman Sachs analyst Kash Rangan rates Monday.com as buy with a 12-month price target of 270.
"We increasingly see Monday.com as one of the best positioned names within software as the company increasingly becomes a strategic platform for enterprises," he said in a client note. "Its Investor Day reaffirmed our conviction in Monday.com's platform expansion strategy."
MNDY Stock On Two IBD Lists
On Nov. 13, Monday.com reported third-quarter earnings and revenue that topped estimates. The software maker's guidance edged above views.
For the quarter ended Sept. 30, Monday.com reported an adjusted profit of 64 cents a share, vs. a year-earlier profit of 5 cents a share. Revenue rose 38% to $189.2 million.
Monday.com ranks a decent No. 22 out of 127 stocks in IBD's enterprise software industry group, according to IBD Stock Checkup. However, it has a very good IBD Composite Rating of 96 out of 99.
MNDY stock is on IBD's IPO Leaders and Tech Leaders lists.
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