Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Friday, Mizuho (NYSE:MFG) analysts increased their price target for MongoDB stock (NASDAQ: NASDAQ:MDB) to $210 from the previous $190, while keeping a Neutral rating. The stock currently trades at $225.38, having surged over 19% in the past week. According to InvestingPro data, the stock’s RSI suggests it’s in overbought territory, with analyst targets ranging from $170 to $430. This adjustment follows MongoDB’s fiscal first-quarter results, which showed revenue of $549 million, a 22% increase year-over-year. This exceeded the consensus estimate of $528 million, reflecting an improvement in consumption revenue and a 26% year-over-year growth in its Atlas service. The company maintains strong financial health with a current ratio of 5.89, and InvestingPro analysis shows it holds more cash than debt on its balance sheet.
MongoDB’s management has adjusted its fiscal year 2026 revenue guidance, raising it by $10 million at the midpoint. However, this increase is smaller than the $21 million beat recorded in the quarter, as the company navigates a $50 million headwind from non-Atlas multi-year renewals. The uncertain macroeconomic environment and the timing of enterprise agreement renewals were cited as influencing factors. With a gross profit margin of 72.89% and 22 analysts revising earnings upward for the upcoming period, the company shows promising fundamentals despite current challenges.
The company continues to reinvest in research and development, as well as sales efforts, with a strategic shift towards enterprise customers and a reduced focus on the mid-market segment. This transition is marked by a move towards more self-service offerings.
MongoDB’s recent acquisition of Voyage AI is seen as a strategic fit for the long term. However, Mizuho analysts do not expect immediate benefits from this AI opportunity, which is reflected in their decision to maintain a Neutral rating on the stock.
In other recent news, MongoDB’s first-quarter financial results have exceeded expectations, prompting several analyst firms to raise their stock price targets. Citi increased its target to $395, highlighting the company’s strong performance despite concerns about competition and developer interest. MongoDB’s Atlas platform showed a 27% year-over-year growth, with significant new client additions and advancements in artificial intelligence. Goldman Sachs also raised its price target to $270, noting a 26% growth in Atlas revenue and a 71% increase in free cash flow. The firm pointed out that MongoDB added 2,600 customers, marking the highest increase in six years.
Bernstein SocGen adjusted its price target to $319, emphasizing MongoDB’s focus on margins and an $800 million expansion in buyback authorization. UBS raised its target to $240, acknowledging modestly above-expectation revenue figures, but maintained a Neutral rating due to ongoing secular trends. RBC Capital reiterated an Outperform rating with a $320 price target, citing MongoDB’s impressive revenue and customer growth. The company’s cautious approach to fiscal guidance, despite a $20 million revenue beat, suggests room for future upward revisions. These developments indicate MongoDB’s strong position in the market, driven by its flexible data architecture and growing enterprise importance.
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