MongoDB stock price target raised to $375 from $325 at Stifel

Investing.com - Stifel raised its price target on MongoDB (NASDAQ:MDB) to $375 from $325 while maintaining a Buy rating on the database software company. Currently trading at $315.38, MongoDB has analyst targets ranging from $222 to $425, with a strong consensus recommendation of 1.68 (Buy).

The firm cited MongoDB’s ability to sustain strong top-line growth and accelerate profitability as it gains market share in the traditional database sector, particularly among larger enterprises. The company has demonstrated this with 21.9% revenue growth and a robust 72.33% gross margin. According to InvestingPro, 30 analysts have revised their earnings upwards for the upcoming period, and the company maintains a GOOD overall financial health score. Subscribers can access 10+ additional ProTips and comprehensive analysis in the Pro Research Report.

Stifel highlighted MongoDB’s architectural advantages and platform completeness for AI applications, including vector search and embeddings capabilities, along with potential benefits from SQL migrations through its maturing application modernization platform.

The research firm expects MongoDB to achieve sustained sales and marketing leverage as the company benefits from increasingly successful self-service customer engagement, making its go-to-market strategy more efficient while funding research and development initiatives.

Stifel described management’s long-term financial framework as "very realistic/conservative," noting projections for high-teens growth overall with Atlas growth exceeding 20%, alongside operating margins above 20% with annual expansion of 100-200 basis points over the next three to five years.

In other recent news, MongoDB has made several significant announcements and updates. The company unveiled new product features at its MongoDB.Local event, including the Application Modernization Platform (AMP) aimed at accelerating relational database migrations and the 8.2 release for improved performance. MongoDB also expanded its search capabilities by integrating vector search into its Community Edition and Enterprise Server products, which were previously exclusive to its Atlas cloud platform. This integration is available in public preview, allowing developers to create AI applications on local or personal infrastructure.

In terms of analyst activity, Guggenheim raised its price target for MongoDB to $400 from $310, maintaining a Buy rating. The firm expects MongoDB to outline growth drivers for its Atlas platform and anticipates a fiscal year 2028 revenue target of $2.700-2.750 billion. DA Davidson also increased its price target for the company to $365 from $325, following their attendance at MongoDB.local in New York City, where key product updates were highlighted. Additionally, Goldman Sachs raised its price target to $370, reinforcing its Buy rating, after attending MongoDB’s events and expressing confidence in MongoDB’s potential as a leader in the modern data stack. KeyBanc maintained its Sector Weight rating, noting the importance of the recent product announcements.

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