Citi raises MongoDB stock price target on strong Q1 performance

Published 05/06/2025, 18:16
Citi raises MongoDB stock price target on strong Q1 performance

On Thursday, Citi analysts increased the price target for MongoDB (NASDAQ:MDB) stock to $395 from $330, reaffirming their Buy rating. This adjustment follows MongoDB’s first-quarter results, which exceeded expectations and countered concerns about rising competition and declining developer interest. According to InvestingPro data, MongoDB’s stock appears overvalued at current levels, with the stock showing a strong 5.48% return in the past week.

MongoDB’s Atlas platform showed a 27% year-over-year growth, driven by strong new workload additions and robust consumption. The company maintains impressive overall revenue growth of 19.24% and a robust gross profit margin of 72.89%. After experiencing softness in April, the company reported a recovery in May. The addition of new clients also improved, indicating strong initial interest in their offerings. For deeper insights into MongoDB’s financial health and growth prospects, InvestingPro subscribers have access to 12 additional key insights and comprehensive analysis.

The company also experienced notable momentum in artificial intelligence, with increased usage at Cursor and advancements in products like the MCP Server Beta and Voyage Labs. However, the fiscal year 2026 guidance was raised by only $10 million, despite a $20 million beat, due to management’s cautious approach regarding large enterprise agreements.

Citi analysts see potential for significant growth in the second half of the year, particularly with the strengthening of consumption and new customer acquisitions. They have adjusted their figures to align with the higher end of the company’s guidance.

In other recent news, MongoDB reported strong first-quarter financial results for fiscal year 2026, exceeding market expectations in several key areas. Subscription revenue surpassed consensus estimates by 3.9%, while Atlas revenue grew by 1.6%. Operating margin improved by 500 basis points, and free cash flow increased by 71%. Following these results, several firms adjusted their price targets for MongoDB stock. Goldman Sachs raised its price target to $270, highlighting Atlas’s 26% revenue growth and a 26% increase in fiscal year 2026 operating income guidance. Bernstein SocGen Group increased its price target to $319, noting MongoDB’s expanded buyback authorization by $800 million. UBS also raised its price target to $240, although it maintained a Neutral rating due to concerns about ongoing secular trends. RBC Capital maintained an Outperform rating with a price target of $320, citing MongoDB’s significant achievements in revenue and customer growth. Truist Securities reaffirmed its Buy rating with a price target of $275, emphasizing balanced growth across Atlas and EA platforms and the potential for operating leverage.

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