Guggenheim raises MongoDB stock price target to $260 on Atlas growth

On Thursday, Guggenheim analysts raised the price target for MongoDB stock (NASDAQ: NASDAQ:MDB) to $260 from $235, while maintaining a Buy rating. According to InvestingPro data, analyst targets for MongoDB range from $170 to $430, with the stock currently trading near $200. The decision was influenced by the company’s recent performance, particularly the growth of its Atlas business, which exceeded expectations.

MongoDB’s Atlas segment experienced a 26% growth, alleviating previous concerns about deceleration. This growth was above buyside expectations and showed improvement compared to the fiscal fourth quarter of 2025. The company’s overall revenue grew 19.2% year-over-year, maintaining strong gross margins of 73.3%. Despite some fluctuations in consumption, the company saw a rebound in May, which contributed positively to its outlook.

The company’s guidance for non-Atlas revenue remained unchanged, explaining the modest $10 million increase in full-year guidance despite a $20 million upside in the first quarter of fiscal 2026. MongoDB’s non-GAAP EBIT margin was raised by 200 basis points to 12%, and the company announced a new $1 billion share repurchase program starting in the second quarter. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt and liquid assets exceeding short-term obligations.

MongoDB also reported the best net new customer additions in over six years, with 2,700 new customers, and an increase in its net revenue retention rate to 119%. These factors contributed to Guggenheim’s positive outlook and the raised price target for the stock. With analysts expecting profitability this year, InvestingPro subscribers can access 12 additional exclusive tips and detailed financial metrics for MongoDB.

In other recent news, MongoDB reported strong financial results for the first fiscal quarter of 2026, with revenues reaching $549 million, surpassing the consensus forecast of $528.2 million. The company achieved a non-GAAP earnings per share of $1.00, exceeding the consensus estimate of $0.66. MongoDB’s revenue grew by 22% year-over-year, driven by a 26% increase in Atlas revenue. Despite some challenges in Atlas growth, non-Atlas revenue exceeded expectations, contributing to a 5-point operating margin beat. Analysts from Rosenblatt, Cantor Fitzgerald, DA Davidson, KeyBanc, and Citizens JMP have all weighed in on MongoDB’s performance. Rosenblatt lowered its price target to $290, while Cantor Fitzgerald increased it to $271. DA Davidson maintained a price target of $275, and Citizens JMP held firm at $345. MongoDB’s management noted a rebound in consumption in May and announced plans to expand its stock buyback program by $800 million. The company also raised its fiscal year 2026 revenue guidance, though less than the first-quarter beat, citing macroeconomic uncertainties and deal timing.

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