MongoDB stock price target raised to $400 from $310 at Guggenheim

Investing.com - Guggenheim raised its price target on MongoDB (NASDAQ:MDB) to $400 from $310 on Monday, maintaining a Buy rating ahead of the company’s investor session at MongoDB .local NYC 2025. The stock, currently trading at $330, has shown remarkable momentum with a 78% surge over the past six months. According to InvestingPro data, 30 analysts have recently revised their earnings estimates upward for the upcoming period.

The firm expects MongoDB’s management to outline drivers for durable Atlas growth and margin improvement opportunities during the investor session scheduled for Wednesday, September 17. Guggenheim anticipates that MongoDB’s CFO Mike Berry could provide a fiscal year 2028 Atlas revenue target of $2.700-2.750 billion, implying a 24-25% three-year compound annual growth rate. This projection aligns with the company’s current performance, as InvestingPro data shows MongoDB maintaining a healthy 21.9% revenue growth rate with a robust gross profit margin of 72.3%.

The research firm also believes MongoDB might set a fiscal year 2028 non-GAAP operating margin target of 20%, compared to the current consensus estimate of 17.5%. Additionally, the company could potentially announce long-term targets for sustainable 20% Atlas revenue growth and operating/free cash flow margin of 25% or higher. The company’s financial health appears solid, with InvestingPro analysis showing strong liquidity metrics and more cash than debt on its balance sheet. Discover 10+ additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report.

Guggenheim projects MongoDB could become a "20%+ grower for the foreseeable future" and achieve "Rule of 40+" status potentially as early as this year. The firm’s updated model forecasts 22% growth with high-teens margins in fiscal year 2026, followed by 25% growth the following year. This outlook is supported by MongoDB’s strong market position, reflected in its current market capitalization of $26.86 billion and impressive 5-year revenue CAGR of 37%.

The price target increase reflects Guggenheim’s expectations for higher future growth and margins, based on a discounted cash flow analysis. The firm also anticipates MongoDB will highlight its architectural advantages versus relational databases and PostgreSQL during the upcoming investor session.

In other recent news, MongoDB has seen a series of analyst updates, reflecting positive sentiment regarding its financial performance and strategic focus. Monness, Crespi, Hardt increased its price target for MongoDB to $360, citing the company’s revised financial guidance for fiscal year 2026, which now projects sales between $2.34 billion and $2.36 billion. Truist Securities also raised its price target to $330, highlighting MongoDB’s "exceptional Q2 result" with significant upside across all metrics compared to analyst estimates. Meanwhile, Wedbush increased its price target to $400, emphasizing MongoDB’s focus on upmarket opportunities within U.S. enterprise channels.

RBC Capital reiterated a $350 price target, identifying an upcoming investor session as a potential catalyst, particularly concerning updates on long-term margin frameworks and AI product adoption. Macquarie adjusted its price target to $265, maintaining a Neutral rating, after increasing its earnings estimates for fiscal years 2026-2028 by 12-21% due to encouraging second-quarter results. These developments underscore MongoDB’s strong recent performance and strategic initiatives, which have been recognized by multiple investment firms.

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