Alexi J. Rosenfeld
Monday.com (NASDAQ:MNDY) rose 1.9% premarket on Tuesday after getting an upgrade at DA Davidson.
The bank bumped its rating on Monday.com (MNDY) to Buy from Neutral and reiterated a $170 price target on the stock.
DA Davidson attributed recent stock weakness to the company’s “founding and headquarters in Israel” amid “recent tragic events in the region and the increased perception of geopolitical risk.”
From October 6 through November 6, Monday.com (MNDY) declined 18%, compared to iShares Expanded Tech-Software Sector ETF being flat for the period. Peers Asana (ASAN) rose 11% and Smartsheet (SMAR) fell 7%.
The bank said it would gracefully “refrain from prognosticating on how the conflict will evolve and hopefully resolve,” but it did note that very little of the company’s revenue comes from the war-blighted region.
In addition, the “company has set itself up for continued success over the coming years (both in strong growth and cash generation),” analysts said.
The stock has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Seeking Alpha’s quant system, which consistently beats the market, rates the stock a STRONG BUY.