Cantor Fitzgerald cuts MongoDB stock target to $332

Published 06/03/2025, 14:20
Cantor Fitzgerald cuts MongoDB stock target to $332

On Thursday, Cantor Fitzgerald’s analyst Thomas Blakey revised the price target on MongoDB stock (NASDAQ:MDB) to $332 from the previous $344, maintaining an Overweight rating on the shares. Currently trading at $264.13, the stock sits within analyst targets ranging from $180 to $520. According to InvestingPro analysis, MongoDB is currently trading near its Fair Value, with analysts maintaining a bullish consensus recommendation of 1.85 (where 1 is Strong Buy and 5 is Strong Sell). Blakey’s analysis suggests that despite a guide below expectations in a challenging software market, the firm remains optimistic about MongoDB’s prospects, particularly the performance of its Atlas (NYSE:ATCO) platform.

Blakey notes that MongoDB’s Atlas growth for Fiscal Year 2026 may have been underestimated by consensus forecasts. After adjusting for unused credits recognized in Fiscal Year 2024, the year-over-year dollar addition from Atlas should be viewed as a continuation of existing trends rather than a distinct improvement. InvestingPro data shows MongoDB’s impressive revenue growth of 19.22% over the last twelve months, with a robust five-year revenue CAGR of 37%. This perspective is reinforced by the expectation of Atlas-based revenue outperforming Street modeling in the near term, supported by demand checks for MongoDB.

The analyst acknowledges that while the company’s guidance did not include certain factors, such as the deployment of production applications on Atlas, these elements contribute to an attractive numerical setup for MongoDB’s stock. The firm’s checks continue to underline the deployment of production applications on Atlas, which is not factored into the guidance, presenting a positive outlook for the company’s future performance.

Furthermore, Blakey admits that the initial analysis did not fully account for the potential impact on margins and the variability associated with large, multi-year deals. Nevertheless, Cantor Fitzgerald views these issues as less critical to the valuation of MongoDB’s shares. The firm emphasizes that its revenue forecasts for Atlas remain essentially unchanged following the recent updates.

Despite the reduction in the price target, Cantor Fitzgerald’s stance on MongoDB remains positive, with the Overweight rating indicating a belief in the stock’s potential to outperform the broader market or its sector in the future. The analyst’s comments reflect confidence in the underlying fundamentals of MongoDB and its Atlas platform as drivers for growth in the coming fiscal year. With a strong current ratio of 5.2 and more cash than debt on its balance sheet, InvestingPro analysis reveals 8 additional key insights about MongoDB’s financial health and growth potential, available exclusively to subscribers through the comprehensive Pro Research Report.

In other recent news, MongoDB has seen a series of price target adjustments from various analyst firms following its latest financial results. Mizuho (NYSE:MFG) Securities reduced its price target to $250, maintaining a Neutral rating, after MongoDB reported fourth-quarter revenues of $548 million, surpassing the consensus estimate of $519 million. Despite this positive result, MongoDB’s fiscal year 2026 revenue guidance of 12.6% year-over-year growth fell short of expectations. Piper Sandler also cut its target to $280, citing growth concerns, but retained an Overweight rating, highlighting the strength of MongoDB’s Atlas segment.

Canaccord Genuity adjusted its target to $320, keeping a Buy rating, and noted MongoDB’s strategic positioning to benefit from the AI value chain. Similarly, Needham revised its target to $270, maintaining a Buy rating, while emphasizing the company’s focus on the Atlas platform for future growth. Truist Securities lowered its target to $300, also retaining a Buy rating, despite MongoDB’s forward guidance not meeting Wall Street’s consensus estimates.

These adjustments reflect analysts’ reassessment of MongoDB’s growth prospects and strategic focus, particularly on the Atlas segment and AI-driven initiatives. MongoDB’s management has indicated a shift towards enterprise customers and continued investment in R&D, with analysts closely watching how these strategies will impact future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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