BMO Capital initiates MongoDB stock with Outperform rating on AI potential

Published 28/07/2025, 08:14
BMO Capital initiates MongoDB stock with Outperform rating on AI potential

Investing.com - BMO Capital initiated coverage on MongoDB (NASDAQ:MDB) with an Outperform rating and a $280.00 price target on Monday. The company, currently valued at nearly $20 billion, has demonstrated strong momentum with an 8.6% return over the past week and maintains a robust current ratio of 5.9x.

The research firm cited MongoDB’s leading technology position in the large and rapidly growing non-relational database market as a key factor in its positive outlook.

BMO Capital expects MongoDB to benefit from the expansion of generative AI workloads and applications over the longer term, providing additional growth opportunities for the company.

The firm projects that MongoDB can maintain over 20% growth in its Atlas cloud database service over the next few years, supporting its bullish stance on the stock.

BMO Capital views MongoDB’s current valuation as attractive with potential for further appreciation, particularly if the company delivers modest upside relative to consensus estimates. According to InvestingPro analysis, MongoDB’s stock is currently trading near its Fair Value, with 12 additional exclusive ProTips available to help investors make informed decisions about this high-growth database company.

In other recent news, MongoDB reported impressive fiscal first-quarter results, with revenue reaching $549 million, a 22% increase year-over-year, surpassing the consensus estimate of $528 million. The company’s Atlas service contributed significantly, showing a 26% year-over-year growth. MongoDB’s management adjusted its fiscal year 2026 revenue guidance upward by $10 million at the midpoint, despite a $50 million headwind from non-Atlas multi-year renewals. Cantor Fitzgerald maintained an Overweight rating for MongoDB, highlighting a robust start to fiscal year 2026 and confidence in Atlas’ potential for over 20% growth. Mizuho (NYSE:MFG) raised its price target for MongoDB to $210 from $190, maintaining a Neutral rating, while Citi increased its target to $395, reaffirming a Buy rating after strong first-quarter performance. Additionally, Goldman Sachs raised its price target to $270, also maintaining a Buy rating, following MongoDB’s robust financial results that exceeded market expectations. The company’s subscription revenue and Atlas revenue both surpassed consensus estimates, with improvements in operating margin and free cash flow. Furthermore, MongoDB’s shareholders approved board elections and a charter amendment at the annual meeting, electing three Class II directors to serve until the 2028 annual meeting.

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