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On Thursday, Goldman Sachs analysts raised the price target for MongoDB (NASDAQ:MDB) stock to $270 from $220 while maintaining their Buy rating. This decision follows MongoDB’s robust first-quarter financial results, which exceeded market expectations across several key metrics. According to InvestingPro data, MongoDB maintains a GOOD financial health score, with analysts setting price targets ranging from $170 to $430.
The company’s 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%. These results contributed to a 15% rise in MongoDB shares in after-hours trading. The company’s strong performance is reflected in its impressive 72.89% gross profit margin and robust liquidity position, with current assets significantly exceeding short-term obligations.
Goldman Sachs highlighted several factors driving this positive outlook. Atlas revenue growth of 26% in the first quarter outpaced the 24% consensus, indicating healthier consumption trends. Additionally, operating income performance led to a 26% increase in fiscal year 2026 operating income guidance. MongoDB also added 2,600 customers, the highest in six years, showcasing sustained demand for its document model. InvestingPro analysis reveals the company’s overall revenue growth of 19.24% in the last twelve months, with analysts expecting continued profitability this year.
The firm noted that MongoDB’s second-quarter revenue guidance aligns with expectations, reflecting steady consumption on the Atlas platform. Despite not fully incorporating the first-quarter beat into future guidance, this approach is seen as a conservative stance amid an uncertain environment.
Goldman Sachs remains optimistic about MongoDB’s positioning in the modern data stack, emphasizing its flexible data architecture and vertically integrated AI platform. The firm’s ongoing go-to-market initiatives are expected to support sustainable growth in the mid-20% range.
In other recent news, MongoDB has reported impressive earnings results, surpassing consensus revenue expectations by 4% and achieving a 22% increase in first-quarter revenues to $549 million. The company has also adjusted its full-year revenue guidance upward by $10 million, projecting between $2.250 billion and $2.290 billion in sales for the fiscal year. Analysts from Monness, Crespi, Hardt upgraded MongoDB’s stock rating to Buy, setting a new price target of $295, while Bernstein SocGen raised their price target to $319, maintaining an Outperform rating. UBS analysts increased their price target to $240 but kept a Neutral rating, citing concerns about ongoing secular trends. RBC Capital reaffirmed an Outperform rating, highlighting MongoDB’s strong quarter with notable growth in its Atlas platform and record net customer additions. Truist Securities maintained a Buy rating, pointing out the balanced growth across MongoDB’s platforms and the potential for operating leverage. MongoDB’s recent performance and revised forecasts have been well-received, with analysts noting the company’s effective execution and potential for further growth.
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