Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Thursday, DA Davidson analysts maintained their Buy rating on MongoDB (NASDAQ:MDB) stock, with a price target of $275, representing potential upside from the current price of $199.73. This decision follows the company’s robust performance in the first fiscal quarter, which saw both Atlas and Non-Atlas revenue surpass expectations, contributing to the company’s impressive 19.2% year-over-year revenue growth.
The analysts noted that Atlas consumption experienced a slight slowdown in April but showed a rebound in May. Atlas growth accelerated on a reported basis to 26% year-over-year, compared to 24% in the previous quarter. According to InvestingPro data, MongoDB maintains strong financial health with a current ratio of 5.2 and more cash than debt on its balance sheet. While there was a slight deceleration when adjusting the fourth-quarter growth for unused commitment headwinds, analysts expect the company to achieve profitability this year.
MongoDB also revised its fiscal year 2026 guidance, raising it slightly less than the first-quarter beat due to some Non-Atlas timing advantages realized in the first quarter. Operating profit projections were significantly increased, reflecting a heightened focus on operational efficiency.
DA Davidson’s continued optimism is based on the company’s strategic emphasis on improving operational efficiency, as highlighted during the earnings call. The analysts reaffirmed their Buy rating and $275 price target for MongoDB stock.
In other recent news, MongoDB has reported impressive financial results for the first fiscal quarter of 2026, surpassing Wall Street’s 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 was above the anticipated $528.2 million. This strong performance was driven by a 22% year-over-year increase in revenue, with Atlas, MongoDB’s cloud database service, contributing significantly by growing 26%. MongoDB also raised its full-year revenue guidance to a range of $2,250-$2,290 million, indicating confidence in continued growth.
Analysts have responded positively to MongoDB’s performance, with Citizens JMP maintaining a Market Outperform rating and a price target of $345. Similarly, KeyBanc reiterated its Sector Weight rating, acknowledging the company’s robust first-quarter results but expressing caution regarding modest growth in Atlas and market competition. MongoDB’s management has emphasized the company’s focus on enterprise strategies and AI workloads, highlighting its document-based database’s suitability for these applications.
Additionally, MongoDB has announced an increase in its operating margin guidance to 12% at the midpoint for the fiscal year, reflecting a focus on profitability. The company also plans to invest in AI capabilities and application modernization to capture market opportunities. MongoDB’s recent acquisition of Voyage AI is expected to enhance its offerings in the AI space, further solidifying its position in the industry.
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