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Investing.com - BofA Securities raised its price target on MongoDB (NASDAQ:MDB) to $380 from $345 on Thursday, while maintaining a Buy rating on the database software company. The company, currently valued at $25.66 billion, has demonstrated strong revenue growth of 21.9% and maintains a healthy gross profit margin of 72.33%.
The price target adjustment follows BofA’s attendance at MongoDB’s analyst day in New York, where the firm was encouraged by the company’s strategic focus on landing larger accounts as MongoDB scales toward $3 billion to $5 billion in revenue. According to InvestingPro data, 30 analysts have recently revised their earnings expectations upward for the upcoming period, supporting the positive outlook.
BofA noted that MongoDB’s three-to-five-year financial targets were largely in line with expectations, with Atlas growth projected at over 20% with potential for high 20% growth in the near term. The firm also highlighted that Enterprise Advanced (EA) growth implied by high teens revenue represents a stable mid-single digit level. With an overall Financial Health score of GOOD from InvestingPro, which offers 10+ additional exclusive insights about MongoDB, the company appears well-positioned for continued growth.
The operating margin target for 100-200 basis points year-over-year improvement at high teens revenue growth aligns with BofA’s existing model, supporting the firm’s positive outlook.
BofA’s new price target is based on 9x CY27E EV/Sales (0.6 adjusted for growth) versus the previous 11x/0.7x CY26E valuation, reflecting improved visibility for MongoDB’s growth trajectory.
In other recent news, MongoDB has been the focus of several analyst upgrades and product announcements. Stifel has raised its price target for MongoDB to $375, maintaining a Buy rating due to the company’s ability to sustain strong top-line growth and accelerate profitability. Similarly, Goldman Sachs increased its price target to $370, highlighting MongoDB’s potential to become a leading player in the modern data stack. DA Davidson also raised its price target to $365, following their attendance at MongoDB’s local event in New York City, where the company announced significant product updates.
During the MongoDB.Local event, the company introduced several new products, including the Application Modernization Platform (AMP) for accelerating relational database migrations and the 8.2 release for faster performance. MongoDB has also extended its search capabilities to its Community Edition and Enterprise Server products, making these features available for public preview. KeyBanc maintained its Sector Weight rating on MongoDB, acknowledging these product developments.
These developments reflect MongoDB’s ongoing efforts to enhance its product offerings and expand its market presence. The company’s integration of search and vector search capabilities allows developers to build AI applications on local infrastructure, broadening its appeal beyond cloud-based solutions. These strategic moves have been met with positive responses from various analyst firms, underscoring MongoDB’s growth potential.
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