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Investing.com - Wolfe Research has raised its price target on MongoDB (NASDAQ:MDB) to $405.00 from $350.00 while maintaining an Outperform rating following the company’s Investor Day. The new target reflects growing confidence in the $25.66 billion market cap company, which has seen 30 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
The research firm cited MongoDB’s successful Investor Day presentation, which demonstrated strong innovation velocity and provided tangible product and financial updates while positioning the company for growth in artificial intelligence applications. This aligns with MongoDB’s impressive 21.9% revenue growth over the last twelve months and a robust 72.33% gross margin.
Wolfe Research highlighted that MongoDB’s document model is particularly well-suited for the AI era, offering flexibility and scalability with native support for vector, text, embedding, and re-ranker models in a single platform.
Survey data referenced by the firm showed positive momentum, with 73% of respondents expecting to increase MongoDB spending over the next twelve months, and 35% already using Atlas vector search, while 61% expect vector database/search capabilities to increase MongoDB consumption.
Management outlined long-term targets including 20%+ Atlas growth, high-teens revenue growth, annual operating margin expansion of 100-200 basis points, 20%+ operating margin, and 80%+ free cash flow conversion, supported by what Wolfe Research described as a massive total addressable market.
In other recent news, MongoDB has seen a series of analyst firms adjust their price targets and ratings following various company events. BofA Securities increased its price target for MongoDB to $380, maintaining a Buy rating, after attending the company’s analyst day in New York. The firm was encouraged by MongoDB’s strategic focus on acquiring larger accounts as it aims for substantial revenue growth. Similarly, Stifel raised its price target to $375, citing MongoDB’s strong top-line growth and increasing market share among larger enterprises.
Goldman Sachs also adjusted its price target to $370, maintaining a Buy rating, influenced by MongoDB’s potential to become a leader in the modern data stack. DA Davidson followed suit, raising its target to $365, praising the company’s new product features and the extension of Atlas-only features to broader editions. KeyBanc reiterated its Sector Weight rating after MongoDB unveiled key product announcements at the MongoDB.Local event. These developments reflect MongoDB’s ongoing efforts to enhance its product offerings and expand its market presence.
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