SoFi shares rise as record revenue, member growth drive strong Q3 results
Investing.com - DA Davidson raised its price target on MongoDB (NASDAQ:MDB) to $365 from $325 while maintaining a Buy rating on the database software company. According to InvestingPro data, MongoDB has seen impressive momentum with a 69.58% price return over the past six months, though current analysis suggests the stock is trading above its Fair Value.
The price target increase follows DA Davidson’s attendance at MongoDB.local in New York City, which included an investor session held by management. The firm highlighted key product updates, including new features and the extension of some Atlas-only features to Community Edition and EA, as well as the launch of the Application Modernization Platform (AMP). With a market capitalization of $25.85 billion and revenue growth of 21.9%, MongoDB continues to show strong business momentum. InvestingPro subscribers can access 12 additional key insights about MongoDB’s growth prospects and financial health.
DA Davidson noted that conversations with customers were positive and continue to validate its long-term thesis on MongoDB, though it observed that generative AI use cases are still not gaining significant traction.
The firm expressed some disappointment regarding MongoDB’s 3-5 year targets, which include high-teens revenue growth and a reiterated 20%+ operating margin target. DA Davidson indicated these targets fell somewhat below what they believe investors were expecting.
Despite these concerns, DA Davidson maintained its Buy rating on MongoDB shares, raising its price target from $325 to $365.
In other recent news, MongoDB has announced the integration of search and vector search capabilities into its Community Edition and Enterprise Server products. This move extends features that were previously exclusive to its Atlas cloud platform, enabling developers to build AI applications on local or self-managed infrastructure. In terms of analyst activity, Guggenheim and Wedbush both raised their price targets for MongoDB to $400, maintaining a Buy and Outperform rating, respectively. Guggenheim expects MongoDB’s management to discuss growth drivers for its Atlas platform, with potential revenue targets for fiscal year 2028. Wedbush cited MongoDB’s focus on upmarket opportunities within U.S. Enterprise as a factor for the increased price target. RBC Capital reiterated an Outperform rating with a $350 price target, highlighting AI adoption as a potential catalyst. Macquarie also raised its price target to $265 from $230, maintaining a Neutral rating, and increased its earnings estimates following MongoDB’s "encouraging" second-quarter results. These developments reflect a period of active engagement and strategic focus for MongoDB in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.