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Investing.com - BMO Capital raised its price target on MongoDB (NASDAQ:MDB) to $315 from $280 while maintaining an Outperform rating on the database software company. According to InvestingPro data, MongoDB , currently valued at $23.22 billion, is trading above its Fair Value, with analyst targets ranging from $170 to $405.
The firm cited MongoDB’s strong Atlas revenue growth, which reached $42 million quarter-over-quarter, significantly exceeding BMO’s estimate of $19 million. The company maintains impressive overall revenue growth of 19.24% and a strong liquidity position with a current ratio of 5.89.
BMO Capital believes MongoDB’s upcoming September investor day could serve as a catalyst for the stock by increasing investor confidence in the durability of Atlas growth and addressing competitive concerns versus the company’s large total addressable market. InvestingPro analysis reveals several positive indicators, including expected net income growth and strong financial health metrics. Subscribers can access 8 additional ProTips and a comprehensive research report for deeper insights.
The research firm maintains its Outperform rating on MongoDB shares alongside the higher price target of $315.
BMO noted that if MongoDB can generate high teens to approximately 20% consolidated growth by fiscal year 2027 while improving free cash flow metrics, the firm’s assumed multiple could prove conservative.
In other recent news, MongoDB has reported strong fiscal second-quarter results, leading to a series of analyst updates. The company’s revenue exceeded expectations by 7%, driven by a significant performance in its Atlas cloud database service, which saw a 29% year-over-year growth. MongoDB’s non-Atlas business also contributed to this revenue beat, marking the largest since the fiscal third quarter of 2024. Following these results, UBS adjusted its price target for MongoDB to $310, maintaining a Neutral rating, while Rosenblatt Securities increased its target to $305 with a Buy rating. Piper Sandler raised its price target to $345, citing robust demand for MongoDB’s cloud services and maintaining an Overweight rating. Bernstein also raised its price target to $338, highlighting the company’s strong net new customer additions. KeyBanc reiterated its Sector Weight rating, acknowledging the company’s significant outperformance in its Atlas service. These developments reflect MongoDB’s accelerating growth and robust market demand.
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