Barclays downgraded monday.com (MNDY) from "Overweight" to "Equal Weight" on Monday. The firm maintained its $100 price target.
The downgrade reflects concerns that revenue benefits from artificial intelligence initiatives may take longer to materialize.
Analyst Raimo Lenschow noted that while AI is scaling, it is not yet large enough to offset a deceleration in monday.com's core business.
Barclays also cited a weaker expansion engine. The firm expects metrics like net dollar retention to soften. Execution risks also arise as monday.com repositions its strategy toward AI and enterprise clients.
Shares of monday.com fell in trading following the announcement.