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.
Copyright: rawpixel / 123RF Stock Photo
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 potential of MNDY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.
Disclosure: None. This article is originally published at Insider Monkey.
