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On Thursday, Stifel analysts reaffirmed their Buy rating and $275 price target on MongoDB (NASDAQ: NASDAQ:MDB) stock, following a robust quarterly performance. According to InvestingPro data, the stock appears fairly valued based on its Fair Value analysis. MongoDB reported a revenue increase of approximately 4% and an operating margin improvement of over 500 basis points. The company also achieved its best new customer acquisition quarter in six years, adding 2,600 new customers, contributing to its impressive 19.2% year-over-year revenue growth.
The revenue growth was attributed to EA/non-Atlas segments, which included early renewals and additional workload sales. Atlas consumption trends aligned with expectations, and while April showed some softness, there was a rebound in May. Following this performance, MongoDB’s management raised its fiscal year 2026 guidance by $10 million. The company maintains a strong financial position with a current ratio of 5.2 and minimal debt-to-equity ratio of 0.03.
MongoDB’s share price surged 14% after hours, boosted by a $800 million share repurchase program. The company’s stabilizing Atlas consumption and improved sales execution are expected to drive workload growth. MongoDB aims to maintain over 20% revenue growth in Atlas, supporting high-teens revenue growth overall. InvestingPro subscribers can access 12 additional key insights about MongoDB’s financial health and growth prospects through the comprehensive Pro Research Report.
Stifel analysts highlighted the company’s expanding range of core and emerging product drivers, which are poised to sustain growth. MongoDB’s performance and strategic initiatives position it well for future revenue expansion, with analysts projecting profitability in the current fiscal year.
In other recent news, MongoDB has reported several key developments that have captured investor attention. The company announced first-quarter revenues that exceeded expectations by approximately 4%, achieving a 22% year-over-year growth. This performance was bolstered by strong sales of its Enterprise Advanced products and a 26% growth in Atlas consumption revenue. MongoDB also added 2,700 new customers, marking the best net new customer additions in over six years and bringing its total customer count to 57,100, a 16% increase from the previous year.
Analyst firms have responded to these developments with adjustments to their price targets for MongoDB stock. Piper Sandler raised its target to $275, citing growth optimism and an Overweight rating, while Loop Capital increased its target to $230, maintaining a Hold rating. Scotiabank (TSX:BNS) also raised its target to $230, reflecting MongoDB’s impressive first-quarter performance, though it maintained a Sector Perform rating due to competitive pressures. Guggenheim set its target at $260, influenced by the Atlas business’s growth, and Rosenblatt adjusted its target to $290, maintaining a Buy rating despite reducing the target from $305.
The company has also announced a new $1 billion share repurchase program and an increase in its non-GAAP EBIT margin by 200 basis points to 12%. These steps, alongside the appointment of a new CFO, are expected to stabilize investor confidence amidst market volatility. MongoDB’s management has increased the fiscal year 2026 revenue outlook by $10 million and committed to improving margin performance, reflecting a strategic focus on capturing more AI-related workloads and expanding its market presence.
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