MongoDB stock price target raised to $375 from $340 at Canaccord Genuity

Published 22/09/2025, 12:28
MongoDB stock price target raised to $375 from $340 at Canaccord Genuity

Investing.com - Canaccord Genuity raised its price target on MongoDB (NASDAQ:MDB) to $375.00 from $340.00 on Monday, while maintaining a Buy rating on the database software company. The company, currently trading at $323.43, has received strong backing from Wall Street, with 30 analysts recently revising their earnings estimates upward according to InvestingPro data.

The research firm cited MongoDB’s potential to capture the AI application cycle by embedding retrieval directly into the operational data plane while preserving performance, security, and multi-cloud options for large enterprises. The company’s solid financial position, with more cash than debt on its balance sheet, provides strong backing for these growth initiatives.

Canaccord noted that MongoDB’s Atlas cloud service now represents approximately 74-75% of the company’s business mix and will be the key driver in this growth phase, while the non-Atlas segment remains a stable base that extends the company’s reach. The company maintains a healthy 72.3% gross profit margin, with revenue growing at 21.9% year-over-year.

The firm highlighted that MongoDB management plans to prioritize growth, operating around a Rule-of-30 this year with long-term ambitions for Rule-of-40, with guidance already pointing to 100-200 basis points of margin expansion over the next few years and rising free cash flow conversion.

At approximately 9 times enterprise value to estimated 2027 revenue, Canaccord views MongoDB’s valuation as reasonable for a company with durable, mid-20s percentage growth potential on the cusp of incremental monetization opportunities. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though the company’s strong momentum is evidenced by its impressive 68% price return over the past six months.Want deeper insights? Get access to 12 additional ProTips and a comprehensive analysis of MongoDB through the Pro Research Report, available exclusively on InvestingPro.

In other recent news, MongoDB has seen a series of price target increases from several financial firms following its recent events and presentations. Piper Sandler raised its price target for MongoDB to $400, highlighting the company’s vision to scale to $5 billion in revenue and adhere to the Rule of 40, which combines revenue growth rate and profit margin. Truist Securities also increased its price target to $375, expressing optimism about MongoDB’s consumption trends observed during the company’s 2025 investor day. Similarly, JMP Securities set a new price target of $375, maintaining a Market Outperform rating after attending MongoDB’s investor day at the .local NYC 2025 user conference. BMO Capital raised its target to $365, citing insights gained from MongoDB’s Analyst event regarding the company’s growth prospects. Scotiabank adjusted its price target to $320, describing MongoDB’s momentum as healthy. These developments reflect a positive sentiment among analysts regarding MongoDB’s future performance and strategic goals.

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