Shares of Monday.com Ltd.
MNDY,
+1.41%
rallied 5.6% toward a new high, after a number of Wall Street analysts started coverage of the Israel-based software platform company with bullish ratings. The stock, which went public on June 10, has now run up 35.4% since closing at $178.87 on the first day of trading, compared with the Renaissance IPO ETF's
IPO,
+0.15%
3.3% gain and the S&P 500's
SPX,
-0.20%
1.9% rise over the same time. Of the 10 analysts surveyed by FactSet who cover Monday.com, eight have the equivalent of buy ratings while two have the equivalent of hold ratings. The average price target of $263.33 is 69.9% above the IPO price of $155, and 8.8% above current levels. Analyst David Hynes at Canaccord Genuity, who initiated the stock at buy with a $275 stock price target, said he's "confident" that collaborative work management is a "huge category" that has the potential to support several large businesses, and Monday.com is a vendor that is "spending aggressively to establish initial beachheads and then has the architectural foundation that makes for easy expansion." Meanwhile, J.P. Morgan's Mark Murphy, who started the stock at neutral with a $245 stock price target, said that while the company is among the fastest growing software companies, as its Work OS platform is "highly differentiating," it is invoking "huge operating losses" to generate growth, with sales and marketing spending reaching 112% of last year's revenue.