MongoDB stock price target reiterated at $350 by RBC on AI adoption

Published 02/09/2025, 15:04
MongoDB stock price target reiterated at $350 by RBC on AI adoption

Investing.com - RBC Capital has reiterated an Outperform rating and $350.00 price target on MongoDB (NASDAQ:MDB), currently trading at $318.37, ahead of the company’s upcoming investor session at MongoDB.local NYC. The stock has shown strong momentum with a 47% return over the past week, according to InvestingPro data.

The investment firm identified the investor session as a potential catalyst for MongoDB, with focus on whether management will update its long-term margin framework and provide greater clarity on consumption trends and AI product adoption. The company maintains strong financial health with a current ratio of 5.7, while delivering impressive gross margins of 72%.

RBC Capital noted that with a new CFO in place, there is scope for refreshed commentary on profitability targets from the database company.

The firm also highlighted that disclosures around Atlas usage, adoption of newer products such as vector search and streaming, and AI positioning could help MongoDB address competitive narratives versus Postgres and hyperscalers.

MongoDB’s investor session is expected to provide insights into the company’s AI strategy and product adoption trends, according to RBC Capital’s analysis.

In other recent news, MongoDB has reported several developments that have caught the attention of analysts. The company increased its financial guidance for fiscal year 2026, now projecting sales between $2.34 billion and $2.36 billion, up from an earlier forecast of $2.250 billion to $2.290 billion. This has led Monness, Crespi, Hardt to raise their price target for MongoDB to $360, maintaining a Buy rating. Truist Securities also adjusted its price target to $330, citing an "exceptional Q2 result" with significant upside across all metrics. BMO Capital increased their target to $315, noting strong Atlas revenue growth of $42 million quarter-over-quarter, which exceeded their estimate of $19 million. UBS raised its price target to $310, highlighting MongoDB’s stronger performance in the second quarter after experiencing softness in April. Macquarie adjusted their price target to $265, increasing earnings estimates for fiscal years 2026-2028 by 12-21% following encouraging second-quarter results. These updates reflect a positive outlook from analysts based on MongoDB’s recent financial achievements and projections.

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