Scotiabank raises MongoDB stock price target to $230 from $160

On Thursday, Scotiabank (TSX:BNS) analysts raised the price target for MongoDB (NASDAQ:MDB) stock to $230 from $160, while maintaining a Sector Perform rating. The adjustment follows MongoDB’s impressive first-quarter performance, which stood out against challenges faced by peers like Elastic (NYSE:ESTC). According to InvestingPro data, MongoDB’s stock currently trades at $199.73, with analyst targets ranging from $170 to $430, suggesting significant potential upside despite its RSI indicating overbought conditions.

MongoDB’s Atlas platform experienced a growth reacceleration, with management highlighting a healthy rebound in consumption during May. This positive development suggests the company may sustain its momentum into fiscal 2026. The company’s robust 19.2% revenue growth and strong gross profit margin of 73.3% support this optimistic outlook.

Despite MongoDB’s strong quarterly results, Scotiabank analysts remain cautious, citing competitive pressures from PostgreSQL and recent acquisitions of PostgreSQL vendors by industry players like Snowflake (NYSE:SNOW) and Databricks.

While acknowledging MongoDB as a leading cloud company, the analysts expressed the need for further confirmation from CIO checks regarding competition, potential AI benefits, and advances in vector search before considering a rating upgrade.

Scotiabank’s decision to maintain the Sector Perform rating reflects a balanced perspective amid the evolving competitive landscape in the database industry.

In other recent news, MongoDB has reported strong first-quarter earnings, with revenues exceeding expectations by approximately 4%, marking a 22% year-over-year growth. The company’s Atlas segment, a key driver of this growth, saw a 26% increase in revenue, with a notable rebound in consumption during May. MongoDB also announced a $1 billion share repurchase program, set to begin in the second quarter, and reported the addition of 2,700 new customers, the highest in over six years.

Guggenheim, Rosenblatt, and Cantor Fitzgerald analysts have made adjustments to their price targets for MongoDB, with Guggenheim raising it to $260, Rosenblatt lowering it to $290, and Cantor Fitzgerald increasing it to $271, all while maintaining positive ratings. DA Davidson also reaffirmed a Buy rating with a $275 price target, citing MongoDB’s strategic focus on operational efficiency. KeyBanc maintained its Sector Weight rating, highlighting the competitive market landscape and the company’s focus on its "run anywhere" strategy.

The company’s guidance for the fiscal year 2026 reflects a modest increase in revenue expectations, with a focus on improving operating margins. Analysts have noted the company’s strong performance in its Enterprise Advanced products and the impact of deal timings on revenue. MongoDB’s management is also reviewing capital allocation strategies, with plans to become more active in share buybacks.

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