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On Wednesday, Canaccord Genuity maintained a Buy rating on shares of MongoDB (NASDAQ: NASDAQ:MDB) and increased the stock's price target to $385 from $325. The firm's analyst highlighted MongoDB's promising position in the artificial intelligence (AI) value chain, as the industry progresses with more AI applications moving into production and value shifting towards applications from the silicon layer.
The company is recognized for its broad portfolio strategy, consistent enterprise momentum, and growing alignment with the emerging needs of AI, which are expected to bolster its long-term growth potential.
The analyst noted that while consumption trends have remained consistent with previous quarters, MongoDB's investments in expanding enterprise channel coverage, AI-driven modernization capabilities, and developer enablement are seen as strategic moves to capture a larger market share in one of the largest markets in software.
Canaccord Genuity's revised price target is based on an approximately 11 times enterprise value-to-revenue (EV/R) multiple on their updated calendar year 2026 revenue estimate of $2.8 billion.
The firm reiterates its confidence in MongoDB, considering it a generational asset with significant long-term value. The updated price target reflects the firm's positive outlook on the company's potential to grow within the software industry, particularly in the AI segment.
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