MongoDB stock price target cut to $357 by Bernstein SocGen

On Monday, Bernstein SocGen Group made adjustments to MongoDB ’s (NASDAQ:MDB) financial outlook, reducing the stock’s price target from $404.00 to $357.00. Despite the lowered target, the firm maintained its Outperform rating on the company’s shares. According to InvestingPro data, MongoDB currently maintains a market capitalization of $20.36 billion and demonstrates strong financial health with more cash than debt on its balance sheet. The adjustment was based on the anticipation of the next fiscal year’s guidance impacting the stock’s performance. The analyst believes that MongoDB’s valuation has undergone a significant reset in the past three months, and the forthcoming earnings report could provide much-needed clarity for investors.

MongoDB, known for its general-purpose database platform, has been recognized for its potential to capitalize on the large and rapidly expanding market, as well as its ability to leverage AI adoption for growth. The company has maintained impressive revenue growth of 20.79% over the last twelve months, though it has recently faced challenges due to slower-than-expected consumption growth, which has affected the growth outlook and led to a decrease in valuation multiples. InvestingPro analysis reveals 8 additional key insights about MongoDB’s growth potential and market position.

The research firm’s analyst suggests that the current valuation multiple for MongoDB is now at a more attractive level, though InvestingPro data indicates the stock is still trading at a high Price/Book multiple of 13.55. Investors are advised to reassess the investment opportunity in MongoDB following the release of its earnings report, scheduled for March 5, 2025. The firm’s approach is to wait for the company’s guidance for the next fiscal year before making any definitive investment decisions regarding the stock.

The revision of the price target reflects a change in the target price-to-sales (P/S) multiple for MongoDB, which has been adjusted from 12.5x to 11x. This recalibration is a direct response to the near-term expectations for the company’s financial performance.

MongoDB’s upcoming earnings report is viewed as a pivotal event that could provide investors with the necessary information to formulate or adjust their investment theses. Bernstein SocGen’s current stance on MongoDB remains positive for the long term, emphasizing the stock’s appeal as a sustained investment despite recent headwinds.

In other recent news, MongoDB has seen a series of notable developments. RBC Capital Markets has maintained its Outperform rating for MongoDB, with a price target of $400, suggesting that concerns over competition from PostgreSQL are overstated. In a separate development, MongoDB announced the appointment of Srdjan Tanjga as Interim Chief Financial Officer, following the departure of Michael Gordon. This leadership change was disclosed in a recent SEC filing. Additionally, MongoDB has partnered with Swiss bank Lombard Odier to modernize banking systems using generative AI, significantly speeding up code migration and application modernization.

Cantor Fitzgerald has initiated coverage on MongoDB with an Overweight rating and a price target of $344, citing potential for normalized growth and improvements in the company’s go-to-market strategy. Meanwhile, Guggenheim has upgraded MongoDB shares from Neutral to Buy, setting a price target of $300, based on a discounted cash flow analysis. The firm expects balanced growth, particularly in MongoDB’s Atlas (NYSE:ATCO) and Enterprise Advanced segments. These analyst ratings reflect optimism about MongoDB’s growth prospects and market position despite recent stock performance challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.