10:56 AM EST, 11/11/2025 (MT Newswires) -- Monday.com's ( MNDY ) rebound was limited by a marginal Q3 beat, but the company is positioned for medium-term durability, Morgan Stanley said in a Monday research report.

Management highlighted continued down market weakness into Q3, volatility in paid search performance, longer upmarket sales cycles, and longer-than-expected time to realize returns on shifted marketing investments, according to the note.

However, Morgan Stanley said management pointed to signs of stabilization around the top of the funnel and new sign-ups towards quarter-end.

Despite signs of weakness, Q3 results showed remaining performance obligations and multi-product net new annual recurring revenue accelerated, net dollar retention rate improved, and large client metrics remained solid. Management was confident about 2026 and 2027 targets, analysts wrote.

The brokerage reiterated its overweight rating on the stock and cut its price target to $236 per share from $260.

Price: 168.02, Change: +1.81, Percent Change: +1.09