Rosenblatt lowers MongoDB stock price target to $290 amid revenue growth

Published 05/06/2025, 12:34
Rosenblatt lowers MongoDB stock price target to $290 amid revenue growth

On Thursday, Rosenblatt analysts adjusted their outlook on MongoDB stock (NASDAQ: NASDAQ:MDB), currently trading at $199.73 with a market capitalization of $16.2 billion, reducing the price target to $290 from $305 while maintaining a Buy rating. This decision follows MongoDB’s report of first-quarter revenues that exceeded expectations by approximately 4%, achieving a 22% year-over-year growth. According to InvestingPro data, the company maintains a robust gross margin of 73.3%.

The company’s performance was bolstered by strong sales of Enterprise Advanced products, which included a $10 million benefit from the timing of deals. Additionally, Atlas consumption revenue grew by 26% year-over-year, and MongoDB added 2,600 new customers sequentially. This marks the strongest customer addition in six years, reflecting sustained interest in NoSQL databases and bringing the total customer count to 57,100, an increase of 16% compared to the previous year. InvestingPro analysis reveals the company maintains a healthy financial position with a current ratio of 5.2, indicating strong liquidity.

MongoDB’s guidance for the second quarter suggests a slight improvement in revenues and margins, partly due to the company’s hiring schedule being slightly delayed in the first quarter. The company’s new Chief Financial Officer is reviewing business and capital allocation strategies, with plans to become more active in share buybacks starting in the second quarter.

Despite the positive first-quarter results and future outlook, Rosenblatt analysts cited lower comparable infrastructure software multiples as a reason for the reduced price target. They remain optimistic about the stock’s near-term performance following the recent earnings report. InvestingPro analysis indicates the stock is trading near its Fair Value, with 12 additional ProTips available to subscribers, including insights on profitability trends and growth prospects. Access the comprehensive Pro Research Report for MongoDB, part of InvestingPro’s coverage of 1,400+ US stocks, for detailed valuation metrics and expert analysis.

In other recent news, MongoDB reported robust financial results for its first fiscal quarter of 2026, surpassing Wall Street expectations. The company achieved a non-GAAP earnings per share of $1.00, beating the consensus estimate of $0.66, and reported revenue of $549 million, exceeding the anticipated $528.2 million. MongoDB’s revenue grew 22% year-over-year, driven by a 26% increase in its Atlas cloud database service, which now accounts for 72% of total revenue. Following these results, several analyst firms responded with updated ratings and price targets.

Cantor Fitzgerald raised its price target for MongoDB stock to $271 from $252, maintaining an Overweight rating, highlighting the company’s NoSQL database and AI technology integration as growth factors. DA Davidson maintained a Buy rating with a $275 price target, citing MongoDB’s strategic focus on operational efficiency. Meanwhile, Citizens JMP reaffirmed its Market Outperform rating, keeping a price target of $345, buoyed by MongoDB’s strong earnings performance. KeyBanc reiterated its Sector Weight rating, noting the competitive market landscape and the need for continued investment in market education.

Additionally, MongoDB announced an expansion of its stock buyback program by $800 million, bringing the total to $1 billion, with buybacks set to begin in the second fiscal quarter of 2026. Despite some macroeconomic uncertainties, MongoDB raised its full-year revenue guidance to a range of $2,250-$2,290 million, indicating confidence in sustained growth. These developments reflect MongoDB’s strong positioning and strategic initiatives in the evolving database market.

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