Stifel raises MongoDB stock price target to $325 on strong Atlas growth

Published 27/08/2025, 11:26
Stifel raises MongoDB stock price target to $325 on strong Atlas growth

Investing.com - Stifel has increased its price target on MongoDB (NASDAQ:MDB) to $325.00 from $275.00 while maintaining a Buy rating following the database company’s quarterly results. The company, currently valued at $17.57 billion, shows promising fundamentals according to InvestingPro analysis, which rates its overall financial health as GOOD.

MongoDB shares jumped approximately 30% in after-hours trading after the company reported what Stifel described as "one of its strongest quarters ever," featuring 29% growth in its Atlas cloud database service, which exceeded expectations by 4-5%. This performance aligns with the company’s impressive 19.24% year-over-year revenue growth and robust 72.89% gross margin.

The company’s total revenue beat forecasts by approximately 7%, driven by healthy consumption growth across its customer base, 2,800 new customer additions (2,500 organic), and emerging AI workload gains.

MongoDB’s revenue performance combined with operational efficiency initiatives pushed operating margins to 14.7%, more than 400 basis points above expectations.

Management has raised its fiscal year 2026 revenue guidance by $70 million, reflecting consumption trends consistent with the first half of the year and slightly improved Enterprise Advanced expectations, while also increasing its operating margin target to approximately 14%, about 150 basis points higher than previous forecasts.

In other recent news, MongoDB has reported robust second-quarter financial results, which have led several analyst firms to raise their price targets for the company. The company exceeded expectations with non-GAAP earnings per share of $1.00, surpassing the consensus estimate of $0.66. MongoDB’s revenue also outperformed consensus estimates by 6.8%, with its Atlas cloud service showing a notable acceleration to 29% year-over-year growth. This performance has prompted Wolfe Research to increase its price target to $350, citing strong enterprise workloads and geographic expansion. Similarly, RBC Capital raised its price target to $350, noting better-than-expected operating leverage and free cash flow. BofA Securities increased its target to $345, attributing the success to MongoDB’s focus on large accounts with high-quality workloads. JMP Securities reiterated a $345 price target, while Goldman Sachs raised its target to $325, highlighting the strong fiscal results. These developments reflect the positive sentiment among analysts regarding MongoDB’s recent performance.

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