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On Thursday, shares of MongoDB (NASDAQ:MDB), currently trading at $264.13, remained in focus as Citi analysts reiterated their Buy rating and $430.00 price target. The endorsement comes in the wake of MongoDB’s fourth-quarter earnings report, which revealed notable improvements in the company’s Atlas (NYSE:ATCO) product consumption and solid revenue growth of 19.22% year-over-year. Despite a conservative revenue forecast for fiscal year 2026, which was approximately 4 percentage points below consensus, Citi analysts expressed confidence in MongoDB’s prospects.
MongoDB’s earnings results highlighted stable to improving fundamentals, with both Atlas consumption and sales productivity on the rise. The company maintains a strong financial position with a healthy current ratio of 5.2, indicating robust liquidity. Citi’s analysts pointed out the cautious guidance is likely due to the ongoing transition of the Chief Financial Officer, viewing the current pullback in stock price as a buying opportunity. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report.
The after-hours stock movement reflected MongoDB trading at what Citi analysts deem a steep discount to its historical valuation, with a next twelve months enterprise value to sales ratio of around 7 times. With a market capitalization of $19.67 billion and a price-to-book ratio of 7.07, this valuation is considered to be lower than the multiples observed in other data and infrastructure acquisitions.
Citi’s analysts underscore MongoDB as an attractive investment, citing a durable growth trajectory. The company’s potential is attributed to opportunities in large-scale migration and new workload acquisition. Moreover, the recent acquisition of Voyage AI is seen as a potential catalyst, with the mainstream adoption of Generation AI technology expected to provide a positive tailwind for MongoDB’s growth in fiscal year 2026.
MongoDB’s stock performance and future outlook are being closely watched by investors, as the company continues to navigate the evolving data management and infrastructure landscape.
In other recent news, MongoDB has reported its fourth-quarter earnings, showcasing a 20% increase in revenue compared to the previous year, surpassing consensus estimates by 5.3%. The company’s Atlas platform, which contributes 71% of total revenue, grew by 24% in the fourth quarter, outperforming expectations. Despite impressive results, MongoDB’s Net Revenue Retention rate was slightly below target, indicating moderated expansion among existing customers. Analyst firms have adjusted their price targets for MongoDB, with Guggenheim reducing its target to $300 while maintaining a Buy rating, and Piper Sandler lowering its target to $280 with an Overweight rating. Cantor Fitzgerald also revised its price target to $332, keeping an Overweight rating, citing optimism about the Atlas platform’s performance. Canaccord Genuity adjusted its price target to $320, maintaining a Buy rating, and highlighted MongoDB’s potential in the AI sector. William Blair reiterated its Outperform rating following MongoDB’s strong quarterly performance. These developments reflect a cautious yet optimistic outlook from analysts regarding MongoDB’s growth prospects and strategic positioning.
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