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Investing.com - Needham has raised its price target on MongoDB (NASDAQ:MDB) to $325.00 from $270.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for MongoDB range from $170 to $405, with the company showing strong financial health metrics and maintaining a robust current ratio of 5.89.
The firm cited MongoDB’s strong performance that exceeded expectations, with revenue beating forecasts by 7%. This outperformance was driven by significantly stronger than expected Atlas consumption, which accelerated to 29% year-over-year growth. The company’s overall revenue growth stands at 19.24% year-over-year, with an impressive gross profit margin of 72.89%.
Needham also noted approximately $10 million in revenue upside from better than expected multi-year license deals. The firm had previously highlighted a favorable Atlas setup going into the quarter but was impressed by the magnitude of strength.
According to Needham, MongoDB’s go-to-market efforts to move up-market are benefiting Atlas consumption and appear sustainable as workloads with large U.S. customers are growing for longer periods and expanding more than previous cohorts.
The higher than expected exit-rate for Atlas has given MongoDB’s management confidence to project mid-20% year-over-year growth for fiscal year 2026, Needham reported.
In other recent news, MongoDB has reported strong fiscal second-quarter results, surpassing expectations and prompting several analyst firms to raise their price targets for the company. DA Davidson increased its price target to $325, citing stronger-than-expected consumption growth. Stifel also raised its price target to $325, highlighting a 29% growth in MongoDB’s Atlas cloud database service, which exceeded expectations. Wolfe Research set a higher price target of $350, noting an acceleration in Atlas’s year-over-year growth to 29%, driven by enterprise workloads and geographic strength. Similarly, RBC Capital increased its target to $350, emphasizing the company’s better-than-expected revenue, earnings per share, and free cash flow. BofA Securities raised its price target to $345, attributing the "breakout" results to a combination of growth initiatives and a focus on large accounts with higher-quality workloads. These developments reflect a positive outlook among analysts for MongoDB’s continued growth and performance.
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