loop capital raises mongodb stock price target to $230 on cloud growth

Published 05/06/2025, 13:24
loop capital raises mongodb stock price target to $230 on cloud growth

On Thursday, Loop Capital analysts raised the price target for MongoDB stock (NASDAQ: NASDAQ:MDB) to $230 from $190, while maintaining a Hold rating. According to InvestingPro data, MongoDB’s stock is currently trading near its Fair Value, with a robust revenue growth of 19.2% in the last twelve months. The adjustment comes as MongoDB’s Cloud Atlas business continues to demonstrate solid growth, contributing to a year-over-year reacceleration in the recent quarter.

The analysts noted that while the cloud consumption trend met expectations, slower growth was observed during early April amid macroeconomic uncertainties. Despite this, MongoDB’s management, under new CFO Mike Berry, has increased the fiscal year 2026 revenue outlook by $10 million. Berry also committed to improving margin performance by raising the non-GAAP operating margin guidance by 250 basis points for the year. The company maintains a healthy gross profit margin of 73.3% and a strong current ratio of 5.2, indicating solid financial health.

MongoDB’s on-premise EA business is expected to decline in high-single-digits for the year, despite outperforming in the first quarter. The company’s strategy includes significant investments in its go-to-market efforts to target large enterprise accounts, aiming to position MongoDB as a standard for cloud database platforms and capture more AI-related workloads.

Shares of MongoDB rose by 15% to approximately $230 in after-hours trading, reflecting investor optimism about the company’s future prospects. InvestingPro analysis reveals the stock has shown strong momentum with a 5.5% gain in the past week, though the RSI suggests it may be entering overbought territory. The analysts remain positive about MongoDB’s long-term growth potential, supported by a large community of over 7 million developers, despite short-term risks in platform adoption. For deeper insights into MongoDB’s valuation and growth metrics, along with 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, MongoDB has reported a strong start to its fiscal year, with significant growth across key metrics. The company’s Atlas platform, a cloud database service, saw a 26% to 27% year-over-year growth, contributing positively to its outlook. MongoDB’s first-quarter revenues exceeded expectations by approximately 4%, achieving a 22% year-over-year growth, with the company adding a record 2,600 to 2,700 new customers. Analysts from Piper Sandler, Scotiabank (TSX:BNS), Guggenheim, Rosenblatt, and Cantor Fitzgerald have adjusted their price targets for MongoDB, reflecting the company’s recent performance and growth prospects.

Piper Sandler raised the price target to $275, citing improved growth prospects and margins. Scotiabank increased their target to $230, while maintaining a cautious outlook due to competitive pressures. Guggenheim set their target at $260, highlighting the positive impact of Atlas’s growth. Rosenblatt adjusted their target to $290, noting strong sales of Enterprise Advanced products and Atlas consumption revenue. Cantor Fitzgerald raised their target to $271, emphasizing the expansion of MongoDB’s stock buyback program and potential benefits from integration with VoyageAI technology. MongoDB’s new $1 billion share repurchase program and the addition of veteran technology CFO Mike Berry are seen as positive developments for stabilizing investor confidence.

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