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On Thursday, Canaccord Genuity adjusted its price target for MongoDB stock, listed on (NASDAQ:MDB), to $320 from the previous $385. Currently trading at $264, the stock sits below InvestingPro’s Fair Value estimate, suggesting potential upside. While analyst targets range from $180 to $520, Canaccord maintained its Buy rating on the shares. Canaccord’s analyst cites MongoDB’s positioning to benefit early from the artificial intelligence (AI) value chain as AI applications advance into production and as the industry sees a shift in value from hardware to applications.
MongoDB, known for its broad-based portfolio strategy, has been gaining steady traction with enterprise clients and aligning increasingly with the emerging needs of AI, factors that are expected to bolster its long-term growth potential. With revenue growth of 19% year-over-year and a strong gross profit margin of 73%, the company demonstrates solid execution. The analyst noted that while recent consumption trends have been in line with past quarters, MongoDB’s strategic investments in expanding enterprise channel coverage, enhancing AI-driven modernization capabilities, and focusing on developer enablement are anticipated to help the company capture a more significant share of one of the largest markets in software. For deeper insights into MongoDB’s growth metrics and 8 additional key ProTips, visit InvestingPro.
The revised price target of $320 is based on approximately 9 times the enterprise value to revenue (EV/R) on Canaccord’s updated calendar year 2026 revenue estimate of $2.7 billion. This is a decrease from the prior valuation of roughly 11 times EV/R on the 2026 revenue estimate. With a market capitalization of $19.7 billion and strong financial health indicators, including a current ratio of 5.2 and more cash than debt on its balance sheet, MongoDB shows fundamental strength. The analyst reaffirms the Buy rating, emphasizing a long-term perspective on MongoDB, which they regard as a generational asset in the software industry.
In other recent news, MongoDB reported fourth-quarter revenues of $548 million, exceeding the consensus estimate of $519 million with a 20% year-over-year increase. Despite this positive outcome, the company’s revenue guidance for fiscal year 2026 projected a 12.6% growth, falling short of the anticipated 18%, partly due to a $50 million headwind from non-Atlas multi-year renewals. Following these developments, several firms adjusted their price targets for MongoDB. Mizuho (NYSE:MFG) Securities reduced its target to $250 while maintaining a Neutral rating, citing the current valuation as not compelling enough for an upgrade. Needham also lowered its target to $270 but kept a Buy rating, emphasizing the company’s focus on Atlas (NYSE:ATCO) for future growth. Truist Securities adjusted its target to $300, maintaining a Buy rating, and suggested the guidance might be conservative. Stifel cut its target to $340, highlighting Atlas’s strong performance and stable consumption trends. Lastly, DA Davidson reduced its target to $275 while maintaining a Buy rating, noting Atlas’s anticipated 21% growth in the coming year.
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