Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Friday, Stifel analysts adjusted their expectations for MongoDB (NASDAQ:MDB) shares, reducing the price target from $340.00 to $275.00 while still endorsing the stock with a Buy rating. According to InvestingPro data, MongoDB's stock has declined nearly 45% over the past six months, though analysts maintain a bullish consensus with price targets ranging from $180 to $520. The revision comes amid concerns over competition from PostgreSQL, prompting Stifel to conduct a survey of 25 MongoDB customers to gauge the comparative usage growth and the possibility of PostgreSQL displacing MongoDB workloads.
The survey's findings revealed that approximately 60% of respondents anticipate similar usage growth for both MongoDB and PostgreSQL, with an additional 15% expecting a faster growth rate for MongoDB. Notably, around one-third of the participants mentioned that they are shifting some MongoDB workloads to PostgreSQL. This competitive dynamic comes as MongoDB maintains strong financial fundamentals, with InvestingPro data showing revenue growth of 19.2% and an impressive gross profit margin of 73.3%. However, the feedback during the survey emphasized that most customers utilize the databases for different use-cases and workloads, taking advantage of the cost and technological benefits offered by each platform.
Despite the evidence of some workload displacement, the survey results were interpreted as reinforcing the continued growth of MongoDB's Atlas (NYSE:ATCO) service, which is expected to exceed 20%. The findings suggest that there are no significant shifts in market share, and customer feedback underscores MongoDB's solid technological and market positioning.
The decision to lower the price target to $275 is attributed to the recent compression in group multiples and a more uncertain economic outlook, with the valuation set at 8 times the calendar year 2026 enterprise value/revenue. MongoDB's financial health remains solid, with InvestingPro analysis showing the company holds more cash than debt and maintains strong liquidity with a current ratio of 5.2. For deeper insights into MongoDB's valuation and growth prospects, investors can access 12 additional ProTips and comprehensive financial metrics through InvestingPro's detailed research report. Stifel's stance indicates a belief in MongoDB's ongoing market relevance and growth potential despite current economic headwinds and competitive dynamics.
In other recent news, MongoDB has been the focus of several analyst reports following its latest financial results. The company reported a notable fourth-quarter performance, exceeding revenue expectations by $27.8 million, marking a 20% increase from the previous year. Despite this, MongoDB's guidance for fiscal year 2026 fell short of market expectations, with a projected $50 million shortfall in revenue due to a decrease in multiyear deal activity. This led RBC Capital to reduce its price target for MongoDB to $320 from $400, while maintaining an Outperform rating. Similarly, Guggenheim Securities adjusted its price target to $300, citing MongoDB's conservative guidance compared to its peers.
Citi analysts reiterated a Buy rating with a $430 price target, expressing confidence in MongoDB's potential, particularly in its Atlas product, which showed a 24% growth in the fourth quarter. DA Davidson also maintained a Buy rating with a $275 target, optimistic about the potential acceleration in Atlas growth in the coming fiscal year. William Blair reaffirmed an Outperform rating, highlighting MongoDB's strong operating margin and ability to secure new workloads, despite a slight moderation in customer expansion rates.
These developments reflect a complex landscape for MongoDB, where strong past performance contrasts with cautious future guidance. Analysts remain largely positive, noting opportunities in new workload acquisitions and potential benefits from recent investments in AI. MongoDB's ongoing transition and strategic investments are key points of interest for investors monitoring the company's future trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.