By Angela Palumbo

The stock market's volatility continues, particularly within tech, but analysts at D.A. Davidson believe there are several software names that could weather the storm.

Monday.com stock was rising Monday after D.A. Davidson analyst Lucky Schreiner upgraded his rating on the project-management software company to Buy from Neutral and reiterated his price target of $350. That implies an 37% increase from the stock's closing price of $255.87 on Friday.

"Monday.com has consistently executed through an uncertain macro since 2022 with steady levels of outperformance. We expect further outperformance in 2025," Schreiner wrote in a research note.

Shares of Monday.com rose 3.1% to $263.83.

Monday.com stock has risen 12% this year, compared with the S&P 500's 4% decline and the Nasdaq Composite's 8.4% drop. The company reported better-than-expected fourth-quarter earnings and revenue on Feb. 10. Monday.com also said it was seeing strong demand for its AI enterprise-service management product.

Still, the shares have dropped 20% from their 2025 high of $327.92, hit on Feb. 11. Like many tech stocks, Monday.com has fallen in response to uncertainty about the market and economic outlook. Monday.com shares are currently trading at 70.3 times the earnings per share expected over the next 12 months, compared with their five-year average of 112.2 times.

"With the recent pull back in MNDY now is an opportune time to take a second look at an attractive entry point," Schreiner said. "We have confidence in the durability of cash flows moving forward for MNDY and are incrementally positive on enterprise adoption given recent results."

D.A. Davidson analyst Gil Luria wrote in a separate research note that given rising market volatility and "subsequent multiple contraction across software, we would focus on stocks that may not stay on the discount rack for very long." This includes Datadog, Snowflake, Shopify, Confluent, Commvault Systems, CyberArk Software, and MongoDB.

Some Wall Street analysts believe that software stocks could be a haven as companies continue to invest in IT services that will increase productivity in the long run.

"The current market narrative of an upcoming consumer led recession creates more uncertainty, however we expect some of our stocks to show resilient growth making current valuation levels more attractive," Luria wrote.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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March 17, 2025 13:43 ET (17:43 GMT)

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