Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Thursday, Cantor Fitzgerald analysts raised the price target for MongoDB stock (NASDAQ: NASDAQ:MDB) to $271 from $252, maintaining an Overweight rating. Currently trading at $199.73, the stock has broader analyst targets ranging from $170 to $430, with a consensus recommendation of "Buy." This adjustment follows MongoDB’s strong start to its fiscal year, marked by significant growth across key metrics. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.
MongoDB showed an impressive performance, with Atlas, its cloud database service, experiencing a 27% year-over-year growth. The company also reported a six-point beat on EBIT and announced an expansion of its stock buyback program by $800 million, totaling $1 billion, with buybacks set to begin in the second fiscal quarter of 2026. InvestingPro data reveals the company maintains strong financial health with a current ratio of 5.2, indicating robust liquidity management.
Despite weaker consumption trends in April, MongoDB’s management noted a rebound in May. The company added a record 2,700 customers quarter-over-quarter, and its net expansion rate increased to 119%. The company’s remaining performance obligation (cRPO) also accelerated, showing a 37% year-over-year increase.
Cantor Fitzgerald analysts highlighted MongoDB’s NoSQL database and the integration of VoyageAI technology as factors that could support revenue growth and application modernization. The analysts believe these factors will benefit the company’s positioning in the AI market.
The new price target implies an 8x multiple of the company’s estimated enterprise value to revenue for the fiscal year ending in 2026, aligning with MongoDB’s one-year next twelve months median and average. With revenue growing at 19.2% year-over-year and analysts expecting profitability this year, MongoDB shows promising fundamentals. For deeper insights into MongoDB’s valuation and growth prospects, including 12 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.
In other recent news, MongoDB has reported impressive financial results for the first fiscal quarter of 2026, significantly surpassing market expectations. The company achieved a non-GAAP earnings per share of $1.00, exceeding the consensus estimate of $0.66, and reported revenue of $549 million, which also surpassed the anticipated $528.2 million. MongoDB’s year-over-year revenue increased by 22%, driven by strong growth in its Atlas cloud service, which grew by 26%. The company’s non-GAAP operating margin stood at 15.9%, significantly higher than the consensus estimate of 10.8%.
Moreover, MongoDB has raised its full-year revenue guidance to a range of $2,250 to $2,290 million, reflecting confidence in sustained growth. Analyst firms have reacted positively to these developments. DA Davidson maintained a Buy rating on MongoDB stock, setting a price target of $275, citing the company’s strategic emphasis on operational efficiency. Citizens JMP also reaffirmed a Market Outperform rating with a price target of $345, underscoring the company’s strong financial performance.
On the other hand, KeyBanc reiterated a Sector Weight rating, acknowledging the robust first-quarter results but remaining cautious about the modest quarter-over-quarter growth in Atlas and the competitive market momentum with PostgreSQL. MongoDB’s management has highlighted the company’s focus on expanding its customer base and enhancing its product offerings, emphasizing the suitability of its document-based database for AI workloads. These recent developments indicate MongoDB’s strong position in the market and its strategic focus on growth and efficiency.
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