Morgan Stanley is optimistic about the strategic potential of Monday.com (MNDY.US) but execution risks still remain. It is given an initial "hold" rating.

Morgan Stanley has given international software company Monday.com (MNDY.US) a "hold" rating for the first time and set a target price of $330, believing that the company has strategic potential to expand into the enterprise market, build a diversified product line, and transition to sales-driven growth, but also noting the risks associated with execution. As a technology service provider offering a cloud-based visual work operating system, Monday.com helps businesses create customized management tools through modular building blocks. Its financial performance in the first quarter of 2025 was impressive: net revenue reached $58.4 million, a year-on-year increase of 84.2%; the employee size expanded to 2,695, with an addition of 187 employees quarter-on-quarter, demonstrating a trend of business expansion. Of note is the explosive growth in the company's application of artificial intelligence functions. The number of AI operations performed by users exceeded 26 million, growing by over 150% compared to the end of 2024, confirming the acceleration of its commercialization of AI technology. However, faced with potential macroeconomic pressures, management has adopted a conservative strategy in its full-year 2025 performance guidance, balancing growth expectations with risk control.