Scotiabank cuts MongoDB stock price target to $160

Published 25/04/2025, 13:24
Scotiabank cuts MongoDB stock price target to $160

On Friday, Scotiabank (TSX:BNS) analyst Patrick Colville adjusted the price target for MongoDB (NASDAQ:MDB) shares, reducing it to $160 from the previous $240, while maintaining a Sector Perform rating. The stock currently trades at $173.21, having fallen over 52% in the past year. The revision follows a period of scrutiny due to growing competitive pressures and concerns about the company’s market traction and potential AI-driven growth. According to InvestingPro analysis, MongoDB appears slightly undervalued based on its Fair Value calculations.

Colville’s report reflects a cautious stance on MongoDB, citing conversations with seven executive IT decision-makers that suggest a decline in MongoDB’s share of new database workloads. While the company maintains strong fundamentals with a current ratio of 5.2 and more cash than debt on its balance sheet, the analyst’s research indicates that MongoDB may be facing challenges in expanding its market presence, which could be exacerbated by broader economic factors that have previously impacted cloud spending. InvestingPro subscribers can access 12 additional key insights about MongoDB’s financial health and market position.

The Scotiabank analyst also mentioned that while MongoDB is recognized as a significant player in the cloud industry, the current findings do not support a rush by investors to acquire shares in the company. Despite its status, the analyst’s fieldwork points to a continued trend of MongoDB capturing a smaller segment of the database market.

Colville noted that even with the possibility of a shift back to a risk-on market sentiment, the insights from his checks do not warrant an immediate increase in investor confidence in MongoDB. He underlined the belief that only a moderate improvement in revenue guidance for fiscal year 2026 could be anticipated, which may not be sufficient to counteract the prevailing negative narratives surrounding the company.

In conclusion, although MongoDB has been acknowledged for its contributions to the cloud sector, the current assessment by Scotiabank suggests that investors should remain cautious. The analyst reiterated a cautious stance on the company, emphasizing the need for MongoDB to demonstrate substantial progress before investor sentiment can shift positively.

In other recent news, MongoDB announced the upcoming resignation of its Interim Chief Financial Officer, Srdjan Tanjga, effective May 8, 2025. The company is in the final stages of appointing a new CFO, with an announcement expected soon. Redburn-Atlantic recently upgraded MongoDB’s stock rating from Sell to Neutral, although they lowered the price target to $170.00, citing the stock’s valuation near historical lows. Meanwhile, Stifel adjusted its price target for MongoDB from $340.00 to $275.00, maintaining a Buy rating due to competitive pressures from PostgreSQL. Their survey of MongoDB customers indicated stable usage growth, reinforcing MongoDB’s market position.

DA Davidson also reaffirmed a Buy rating with a $275.00 price target, despite a notable decline in MongoDB’s share value. They anticipate Atlas growth to accelerate in the first quarter of FY26, potentially exceeding the company’s guidance. MongoDB’s recent developments, including the CFO transition and analyst evaluations, are closely watched by investors and analysts for their potential impact on the company’s financial strategy and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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