Monday.com has so far navigated a tough economy, JPMorgan said Monday, noting that the software’s share price is a good entry point for long-term investors. Analyst Pinjalim Bora upgraded the stock from neutral to overweight and raised his price target by $10 to $140. This reflects a 27.5% increase from Friday’s close. JPMorgan initiated neutral coverage on the software publisher in May ahead of its second-quarter earnings release. Bora initially had concerns about what the worsening economic backdrop would mean for the stock’s value, though fears have been eased by recent results. “Having seen the relative resilience of the business against a difficult macro backdrop and solid execution from management over the past two quarters, in addition to the stock returning closer to our initial entry levels, we are now more comfortable moving to an overweight position,” Bora said in a statement. to customers. Monday.com, which debuted on the Nasdaq in June 2021, was among a slew of companies that went public during the pandemic and are now battered by the bear market. Down 64.4% from the start of 2022, he said the stock was at an “attractive entry point” for long-term investors. The stock gained 8% on Monday. Bora said the company has not seen large outflows or significant downgrades in recent quarters, despite having a relatively higher proportion of small and medium-sized businesses as customers. He said this supports the argument that Monday.com has a strong value proposition despite the poor economic picture. He also pointed to conversations with clients that indicate plans to increase work with the company in the future despite the broader industry expecting a decline in demand amid a tightening economy. Bora said the company could see growth by opening new operating system solutions to existing customers, monetizing products and releasing a backend engine that will improve scalability. Compared to direct competitors Smartsheet and Asana, Bora said Monday.com has the fastest revenue growth and an “elite” margin profile. He said that while he doesn’t think the company will be completely immune to a worsening economy, it “has done a great job of navigating the environment so far.” He called Monday.com a “very solid company” that is aligned with digital transformation and flexible work trends. — CNBC’s Michael Bloom contributed to this report.