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Investing.com - BofA Securities raised its price target on MongoDB (NASDAQ:MDB) to $345 from $275 while maintaining a Buy rating following what it described as "breakout" second-quarter results. According to InvestingPro data, MongoDB maintains a "GOOD" overall financial health score, with analysts setting targets ranging from $170 to $405.
The firm noted there was no single driver behind the upside, but rather a combination of several key growth initiatives. MongoDB’s efforts to focus on large accounts with higher-quality workloads is driving better expansion deals, according to BofA. The company’s strategy appears to be working, with revenue growing at 19% and maintaining a robust gross margin of 73%.
The research firm also highlighted that MongoDB’s focus on articulating differentiation in the mid-market is improving win rates, with customer additions of 2,500 organic representing the strongest level in two years.
BofA Securities pointed out that MongoDB stock rose 30% after hours following the results, though it trades at 8x CY26 sales, which the firm considers "still not commanding on a growth-adjusted basis."
The new price target is based on 10x CY26 estimated revenue, up from 8x previously, with BofA citing MongoDB’s "best of breed position in a large addressable market for unstructured database ($100 billion)" as supporting a healthy runway for growth.
In other recent news, MongoDB reported its second-quarter fiscal 2026 earnings, delivering results that surpassed analyst expectations. The company posted non-GAAP earnings per share of $1.00, significantly exceeding the consensus estimate of $0.66. MongoDB’s revenue also outperformed expectations, reaching $591.4 million compared to the anticipated $553.94 million. Additionally, the company’s Atlas cloud service saw accelerated growth, increasing to 29% from 26% in the previous quarter. Following these strong results, Goldman Sachs raised its price target for MongoDB to $325, maintaining a Buy rating. JMP Securities reiterated its Market Outperform rating with a price target of $345. Operating income and free cash flow margin also exceeded projections, with operating income coming in 51% above expectations and the free cash flow margin outperforming by 1,200 basis points. These developments reflect positively on MongoDB’s financial performance and growth trajectory.
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