10:45 AM EDT, 08/12/2025 (MT Newswires) -- Monday.com ( MNDY ) offers a lucrative entry point as the company is positioned to penetrate multi-product and upmarket opportunities, Morgan Stanley said in a Tuesday research note.

The company is capable of managing risks associated with its transition to moving upmarket, expanding to multi-product, and adopting a sales-driven growth motion, presenting a compelling opportunity, according to the note.

The company's 2025 revenue guidance raise was lower than the Q2 beat, implying deceleration in H2, analysts wrote.

"Technically a beat and raise with solid results across larger customer momentum and multi-product, but a skinnier beat against higher expectations and focus on paid search drove shares meaningfully lower," according to the report.

The company benefits from robust expansion from existing clients and is known for utilizing its 'Big Brain' AI capabilities internally to optimize performance marketing spend based on ROI. "We expect monday.com ( MNDY ) will successfully navigate this market disruption to paid search, leaning into other channels," according to the brokerage.

Morgan Stanley said it upgraded the stock to overweight from equalweight and adjusted its price target to $260 per share from $330.

Price: 177.33, Change: +3.19, Percent Change: +1.83