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Investing.com - Piper Sandler raised its price target on MongoDB (NASDAQ:MDB) to $345 from $275 while maintaining an Overweight rating on the database software company. The new target sits within the broader analyst range of $170-$405, with InvestingPro data showing strong market confidence reflected in the stock’s $17.57 billion market capitalization.
The firm cited robust cloud database demand and accelerating growth in MongoDB’s Atlas cloud service, which surged 11% quarter-over-quarter with year-over-year growth accelerating to 29% from 26% previously. This growth contributes to MongoDB’s impressive overall revenue growth of 19.24% and healthy gross margin of 72.89%.
Piper Sandler noted that Atlas now represents 74% of MongoDB’s sales and contributed a record $40 million quarter-over-quarter increase in revenue, driven by higher-quality workloads at core customers, AI natives, and PostgreSQL migrations.
The research firm highlighted that MongoDB’s new CFO Mike Berry raised the operating margin midpoint outlook to 13.9% from 12.2% previously, strengthening the case for improved growth and margin trajectory. InvestingPro analysis reveals the company maintains excellent liquidity with a current ratio of 5.89, while analysts expect positive earnings this fiscal year.
Piper Sandler also pointed to MongoDB’s upcoming user event and analyst day scheduled for September 17, suggesting the Atlas service is poised to surpass a $2 billion run-rate next year with 20%+ growth prospects. For deeper insights into MongoDB’s growth trajectory and financial health (rated as GOOD by InvestingPro), investors can access the comprehensive Pro Research Report, available exclusively to subscribers.
In other recent news, MongoDB reported robust fiscal second-quarter results, with its Atlas cloud database service surpassing expectations by $20 million, marking a 5% outperformance. This contributed to a 7% overall revenue beat, the largest since fiscal third-quarter 2024. The company also experienced its strongest net new customer additions in six years, with Atlas cloud service accelerating to 29% growth. Following these results, several analyst firms have adjusted their outlook on MongoDB. Bernstein raised its price target to $338, maintaining an Outperform rating, citing the accelerating growth of Atlas. Rosenblatt Securities increased its price target to $305, highlighting strong performance in Enterprise Advanced and non-Atlas revenue. Cantor Fitzgerald adjusted its target to $312, noting a 52% beat in EBIT according to Visible Alpha data. Morgan Stanley also raised its price target to $325, acknowledging the company’s accelerating customer base and margin expansion.
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