Monday.com rated Neutral at UBS as good news priced in
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Project management software company Monday.com (NASDAQ:MNDY) was initiated at Neutral by UBS on Thursday, with the investment firm saying the good news is already priced into the stock.
The firm set a price target of $175, compared to the average analyst estimate of about $209. 
Shares were unchanged before the open on Thursday.
Shares of the Israeli-based company trade at a higher valuation than its peers, which, while fair given its superior growth, suggests it is fairly valued, analysts Taylor McGinnis and Daniela Campo wrote in a note.
âWhile Monday appears well positioned to be the consolidator in this market, at its current valuation, Monday shares appear fairly priced relative to peers as we embed some conservatism in our valuation to account for the competitive risks to its growth potential,â the analysts said. 
The firm also initiated Asana (ASAN) at a Neutral and Smartsheet (SMAR) at a Buy noting that revenue for the collaborative work management segment of the software industry will decelerate to 20% from the 30% historical growth it has seen amid increasing competition. The industry may begin to recover in 2025, though UBS said the market is âsomewhatâ commoditized. 
The firm sees a slower recovery for collaborative work management companies amid stabilizing demand. Itâs early days still regarding the impact of generative artificial intelligence, with expectations that the segment will eventually benefit. Microsoft (MSFT) came up in conversations with customers of the companies. 
UBS said Monday.com (MNDY) is capable of growing revenue by 38% year-over-year in 2023, in line with Wall Street estimates, with revenue growth decelerating to the high-20%s over the next three years. 
Analysts are mixed on Monday.com (MNDY). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates the stock a HOLD.

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