TSX runs higher on rate cut expectations
Investing.com - DA Davidson raised its price target on MongoDB (NASDAQ:MDB) to $325 from $275 while maintaining a Buy rating on the database software company. The company, currently valued at $17.57 billion, has received a strong consensus from Wall Street analysts with targets ranging from $170 to $405. According to InvestingPro data, MongoDB maintains a GOOD overall financial health score.
The price target increase follows MongoDB’s strong fiscal second-quarter results that exceeded expectations, driven by stronger-than-expected consumption growth. The company has demonstrated robust performance with a 72.89% gross profit margin and impressive revenue growth of 19.24% over the last twelve months.
Atlas, MongoDB’s cloud database service, showed accelerating growth, reaching 29% year-over-year compared to 26% in the previous quarter, according to DA Davidson.
The firm noted that the consumption rebound observed in May continued throughout the quarter, and new workloads acquired from large customers last year are demonstrating sustained growth for longer than typical periods.
MongoDB raised its fiscal year 2026 guidance across all metrics by more than the fiscal second-quarter beat, particularly for operating profit, with DA Davidson suggesting the guidance "continues to appear prudently set & beatable."
In other recent news, MongoDB has reported impressive second-quarter results, featuring a notable 29% growth in its Atlas cloud database service. This performance exceeded expectations and has led several analyst firms to raise their price targets for the company. Stifel increased its target from $275 to $325, citing the quarter as one of MongoDB’s strongest ever. Wolfe Research also raised its price target to $350 from $280, highlighting the acceleration in Atlas growth driven by enterprise workloads and geographic strength, especially among larger U.S. customers.
RBC Capital followed suit, increasing its target to $350 from $320, noting better-than-expected operating leverage and financial metrics, including revenue and earnings per share. BofA Securities raised its target to $345 from $275, attributing the results to multiple growth initiatives and a focus on high-quality workloads. JMP Securities maintained its $345 target, emphasizing MongoDB’s non-GAAP earnings per share of $1.00, which significantly surpassed the consensus estimate of $0.66. These developments reflect strong analyst confidence in MongoDB’s ongoing growth and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.