EU and US could reach trade deal this weekend - Reuters
On Tuesday, Citi analysts reiterated their Buy rating for MongoDB (NASDAQ:MDB) stock, maintaining a price target of $330, well above the current trading price of $193. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $160 to $430. The analysts expect a strong beginning for MongoDB’s fiscal year 2026, driven by ongoing strength in enterprise agreements and multiple expansion deals. They see potential upside in MongoDB’s Atlas service, particularly within the financial services sector.
The analysts noted positive alternative data points, highlighting an increase in Atlas traffic and traction in open-source initiatives. Despite concerns about rising competition from Postgres, they believe the total addressable market for MongoDB is large enough to sustain growth. The company’s revenue has shown strong momentum, with InvestingPro data showing a 19.2% year-over-year increase and a impressive five-year CAGR of 37%. The proliferation of Agentic AI applications is seen as a differentiator for MongoDB compared to Postgres.
MongoDB shares have been trading at lower valuations in the past month, with a next twelve months enterprise value to sales ratio of approximately 6x. The stock has experienced a significant 40% decline over the past six months, according to InvestingPro data, which also indicates the company maintains strong liquidity with a current ratio of 5.2. Citi analysts anticipate a positive earnings surprise, projecting a 4-5% beat on subscription revenue and an increase from the conservative fiscal year 2026 revenue guidance of 13% year-over-year growth.
The analysts are awaiting further commentary from MongoDB’s new CFO, Mike Berry, to provide additional insights into the company’s financial outlook. Despite the competitive landscape, Citi remains optimistic about MongoDB’s growth prospects and market position. InvestingPro analysis reveals additional insights through multiple ProTips, including strong balance sheet metrics and growth indicators. For comprehensive analysis and detailed financial metrics, investors can access the full MongoDB Pro Research Report, available exclusively on InvestingPro.
In other recent news, MongoDB has been the focus of several analyst reports and company announcements. The company is set to release its first-quarter fiscal year 2026 earnings on June 4, with analysts expressing varied expectations. Guggenheim analyst Howard Ma adjusted the price target for MongoDB to $235, maintaining a Buy rating, and projected a modest upside for both Atlas and non-Atlas revenue. Meanwhile, UBS analyst Karl Keirstead reduced the price target to $213, maintaining a Neutral rating, citing concerns about MongoDB’s revenue growth forecast amid industry competition. RBC Capital maintained an Outperform rating with a $320 target, expressing optimism about MongoDB’s growth trajectory, particularly with the recent appointment of Mike Berry as CFO. Scotiabank (TSX:BNS)’s Patrick Colville, however, lowered the price target to $160, maintaining a Sector Perform rating due to competitive pressures and concerns over market traction. MongoDB’s strategic initiatives and the potential impact of General Artificial Intelligence on application development remain focal points as the company navigates these challenges. The upcoming earnings report and the company’s ability to meet or exceed revenue projections will be closely watched by investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.