Monday.com Ltd. (MNDY) shares plummeted 5.01% during intraday trading on Wednesday, following a significant price target cut by a major financial institution.

The sharp decline came after Morgan Stanley reduced its price target on monday.com to $115 from $200, a substantial 42.5% cut, while maintaining an Overweight rating on the stock. Such a dramatic downward revision in price target typically signals reduced earnings expectations or concerns about the company's future growth prospects, prompting investors to reassess the stock's valuation.

Despite the price target reduction, Morgan Stanley maintained its Overweight rating, suggesting analysts still see potential in the company's long-term prospects even as near-term expectations have been tempered.