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On Monday, Loop Capital Markets adjusted its price target on MongoDB shares (NASDAQ:MDB), bringing it down to $350 from the previous $400, while still maintaining a Buy rating on the stock. Currently trading at $267.43, MongoDB sits between its 52-week range of $212.74 to $449.12, with analysts’ targets ranging from $180 to $520. According to InvestingPro data, the stock currently appears fairly valued based on its proprietary Fair Value model. Analyst Yun Kim from Loop Capital provided insights into the decision, citing a continued positive trend in cloud consumption for MongoDB’s cloud Atlas (NYSE:ATCO) business, which is anticipated to bring a modest revenue increase for the fourth fiscal quarter.
The industry checks conducted by Loop Capital suggest that MongoDB’s cloud consumption trends remain healthy, and recent changes in sales incentives are contributing to a steady increase in new workloads. With a market capitalization of $19.92 billion and impressive revenue growth of 20.79% over the last twelve months, MongoDB demonstrates strong market presence. InvestingPro analysis reveals several positive indicators, including a solid gross profit margin of 73.86% and robust liquidity position. However, the firm has not observed a significant acceleration in overall cloud consumption patterns, aligning with the results of other cloud service providers (CSPs) and cloud infrastructure software vendors in the current earnings season.
MongoDB’s bookings for its Atlas business show a positive yet modest trend, with no notable uptick in new cloud application deployments at the year’s start. Expectations for new workloads from Generation Artificial Intelligence (GenAI) applications and agents are set to rise in the second half of the year and become more substantial in the calendar year 2026.
The company’s new go-to-market strategy, which focuses more on large enterprise customers, is still in the early stages and is expected to fully ramp up in the latter half of the year. Despite the competition, MongoDB is reported to maintain a strong market leadership position, with its Atlas business not significantly affected by PostgreSQL and CSPs’ NoSQL offerings, such as Azure CosmoDB.
With Srdjan ("Serge") Tanjga stepping in as the interim CFO, Loop Capital anticipates MongoDB to take a conservative approach to its outlook, mirroring the stance of its industry peers. The less strategic Enterprise Agreement (EA) business of MongoDB is performing well, and this trend is likely to continue as customers modernize their on-premises deployment options to leverage CSPs’ private cloud offerings.
Loop Capital highlights MongoDB’s status as the leading development platform for cloud applications, with a community of over 7 million developers. The firm views MongoDB as an optimal investment to capitalize on two major IT trends: migration of workloads to the cloud and GenAI adoption.
MongoDB is set to report its fourth fiscal quarter results on March 5th after the market close. Loop Capital has fine-tuned its fiscal year 2026 estimates to reflect a more modest ramp in the first half of the year, while reiterating its Buy rating despite the reduced price target. InvestingPro subscribers can access 8 additional key insights about MongoDB’s financial health and growth prospects, along with a comprehensive Pro Research Report that provides deep-dive analysis of the company’s performance metrics and future outlook. The platform’s advanced tools and expert analysis can help investors make more informed decisions ahead of this crucial earnings announcement.
In other recent news, MongoDB has announced the acquisition of Voyage AI, a company known for its advanced embedding and reranking models for AI applications. This move is aimed at enhancing MongoDB’s AI-powered application capabilities by integrating Voyage AI’s technology to improve information retrieval. In another development, Bernstein SocGen Group has adjusted MongoDB’s price target from $404.00 to $357.00, while maintaining an Outperform rating. The firm anticipates that the upcoming earnings report will offer clarity on the company’s financial outlook. Meanwhile, RBC Capital Markets has reiterated its Outperform rating for MongoDB, maintaining a price target of $400.00, and downplaying concerns about competitive pressures from PostgreSQL. Additionally, MongoDB has appointed Srdjan Tanjga as its interim Chief Financial Officer, following the departure of Michael Gordon. Tanjga has been with MongoDB since 2019 and previously served as Senior Vice President, Finance. These recent developments reflect MongoDB’s ongoing strategic adjustments and market positioning efforts.
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