Monday.com (NASDAQ:MNDY) surged by a notable 2% in premarket trading on Friday, buoyed by an enthusiastic endorsement from Jefferies.

Jefferies’ Positive Outlook

• The investment bank decisively upgraded the stock to a Buy from a previous Hold rating, while setting a bold $230 price target, signifying robust confidence in the software company’s future performance.
• According to analyst Brent Thill, Monday.com stands out as a strong contender in the collaboration software segment, exhibiting a commendable trajectory in both revenue growth and free cash flow margins.

Comparative Advantage

Thill’s endorsement compares Monday.com to an early-stage Salesforce (CRM) or Hubspot (HUBS) with the potential for sustained platform development and innovation-driven growth. He emphasized the stock’s attractive relative valuation, pointing out its substantial discount compared to other high-growth software peers.

Market Performance

Monday.com’s soaring success is evident, with shares surging by an impressive 52% over the past year, highlighting an upward trend as recognized by both Seeking Alpha authors and Wall Street analysts who have designated it as a BUY.

Divided Opinion

Intriguingly, while the stock holds a BUY rating from Seeking Alpha authors and Wall Street analysts, Seeking Alpha’s quant system, renowned for consistently outperforming the market, has contrarily rated the stock a HOLD.