European stocks mixed on Friday after volatile week; U.K. economic woes
Investing.com - Scotiabank raised its price target on MongoDB (NASDAQ:MDB) to $320.00 from $280.00 on Friday, while maintaining a Sector Perform rating on the database software company. According to InvestingPro data, MongoDB currently trades slightly above its Fair Value, with a market capitalization of $25.73 billion and maintains a "GOOD" overall financial health score.
The price target increase follows Scotiabank’s attendance at MongoDB’s .local NYC 2025 event, where analysts conducted conversations with over 10 MongoDB customers to gauge current demand and sentiment. The firm described MongoDB’s overall momentum as "healthy, but not explosive." This assessment aligns with InvestingPro data showing robust revenue growth of 21.9% and strong liquidity metrics, with current assets significantly exceeding short-term obligations at a ratio of 5.7.
Scotiabank noted evidence of targeted database modernization efforts moving to MongoDB, but did not observe signs that the company was winning an outsized share of new database workloads. The firm also reported difficulty finding examples of MongoDB benefiting from enterprise AI deployment, suggesting it’s "still too early" to identify AI as a tailwind for the company.
MongoDB shares have risen 36% year-to-date and currently trade at approximately 57 times fiscal 2027 estimated EBITDA, according to Scotiabank’s analysis. The firm indicated that further multiple expansion would require evidence of a sustained uptick in momentum, which their customer checks did not confirm.
While acknowledging MongoDB has "firmly earned the right to be called a hall of fame infrastructure software company," Scotiabank recommended investors take a "wait-and-see approach" on MongoDB shares. For deeper insights into MongoDB’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, investors can access the full company research report on InvestingPro.
In other recent news, MongoDB has seen several investment firms raise their price targets for the company following its investor day and related events. Piper Sandler increased its price target to $400, noting MongoDB’s ambition to reach $5 billion in revenue and adhere to the Rule of 40, where revenue growth and profit margin together exceed 40 percent. Meanwhile, JMP Securities raised its target to $375, maintaining a Market Outperform rating, after attending MongoDB’s investor day and hearing the company’s long-term financial targets. Truist Securities also adjusted its target to $375, expressing optimism about MongoDB’s consumption trends. BMO Capital followed suit, raising its price target to $365, citing insights into MongoDB’s growth prospects. UBS set a new target of $330, highlighting the company’s 3-5 year growth outlook. These developments reflect increased confidence among analysts regarding MongoDB’s future performance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.