Short seller Hedgeye sees 30% downside in monday.com

Israeli business operating systems company monday.com (Nasdaq: MNDY) The stock price was on a roll last weekend on Wall Street, falling 3.3% on Thursday and rising 3.3% on Friday to $225, giving it a market cap of $11 billion. The volatility came on the heels of a report calling for selling on monday.com by US hedge fund researcher Hedgeye Risk Management. Hedgeye expects a 30% decline in monday.com over the next nine to 12 months.

“Monday.com has seen significant growth in its core offerings, achieving a CAGR of 27% over four years and serving more than 225,000 customers as of 2023,” Hedgeye said. “However, the company’s attempts to expand into new areas, such as Customer and Developer Relationship Management – Focused products have had limited success, with low penetration rates and integration challenges.

monday.com was founded by co-CEOs Eran Zinman and Roy Mann. According to the Wall Street Journal, most analysts covering the company’s stock have a positive recommendation and only one analyst has an “underperform” recommendation. The average price target of analysts covering the stock is $261, 16% above Monday.com’s price. Current stock price on Nasdaq.

Published by Globes, Israel Business News – en.globes.co.il – on June 23, 2024.

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