Truist cuts MongoDB stock price target to $300, keeps Buy rating

On Thursday, Truist Securities adjusted its outlook on MongoDB (NASDAQ:MDB) shares, reducing the price target to $300 from the previous $400, while maintaining a Buy rating on the stock. Currently trading at $264.13, MongoDB, with a market capitalization of $19.7 billion, sits between its 52-week range of $212.74 to $424. The adjustment by Truist analyst Miller Jump followed MongoDB’s fourth-quarter earnings call, which presented mixed signals for investors. According to InvestingPro data, the company’s current valuation suggests it’s trading near its Fair Value.

MongoDB reported earnings that surpassed Truist’s expectations, yet the company’s forward guidance for the upcoming year did not meet the consensus estimates from Wall Street, leading to a reassessment by the analyst. Despite the lowered expectations, Truist’s commentary suggested that the company’s forecast might be on the conservative side. InvestingPro analysis reveals strong fundamentals, with the company maintaining a healthy current ratio of 5.2 and impressive revenue growth of 19.2% in the last twelve months.

The earnings call included various factors that were weighed by the analysts, leading to a recalibration of the company’s financial projections. Truist highlighted that the revised guidance and the resulting changes to their estimates warranted a decrease in the target price.

Truist’s maintained Buy rating indicates a continued positive outlook on MongoDB’s performance, despite the lowered price target. The firm’s analyst commented on the earnings call’s outcomes, explaining the rationale behind the new target price. "Following significant uncertainty going into their 4Q25 earnings call, MDB produced results with upside to our expectations but reset the bar lower on guidance for the year ahead with an outlook that underwhelmed Street expectations. There were a number of puts and takes in the commentary on the call, and we believe that the net-net is that the guidance for the year ahead could prove conservative. We lower our estimates and target price to $300 from $400 in response to the update, but we reiterate our Buy rating," stated the Truist analyst.

MongoDB’s recent earnings call and the subsequent price target adjustment by Truist Securities will likely be closely watched by investors as they gauge the company’s future performance in the market. The broader analyst community maintains a bullish stance, with targets ranging from $180 to $520. For deeper insights into MongoDB’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional ProTips and detailed analysis of the company’s market position.

In other recent news, MongoDB has reported its fourth-quarter earnings, revealing a revenue of $548.4 million, which surpassed the expected $519.6 million and marked a 20% year-over-year increase. Despite this strong performance, the company provided a revenue forecast for fiscal year 2026 that fell short of analysts’ expectations, projecting $2.240 billion to $2.280 billion, below the consensus estimate of $2.325 billion. This cautious guidance led several analysts to adjust their price targets for MongoDB. Stifel reduced its target to $340, DA Davidson to $275, Citizens JMP to $345, BofA Securities to $286, and Goldman Sachs to $335, with all maintaining positive ratings on the stock.

Analysts noted that MongoDB’s Atlas (NYSE:ATCO) product showed a robust performance, with a year-over-year growth of 24% to 25%, depending on adjustments for unused commitments. However, the company’s non-Atlas revenue is expected to decline, contributing to the conservative outlook for FY26. Despite these challenges, analysts like those from Stifel and DA Davidson remain optimistic about MongoDB’s potential, highlighting the company’s stable consumption trends and strategic focus on expanding core and emerging product drivers. MongoDB’s management has emphasized the positive consumption trends in Atlas and improved sales execution, which are expected to drive future growth.

The company also reported a significant improvement in its non-GAAP operating margin, which reached 20.5%, exceeding market forecasts. Analysts from firms such as Goldman Sachs and BofA Securities see potential for MongoDB to stabilize and possibly accelerate its growth, particularly in its Atlas segment, as macroeconomic conditions improve. These developments are being closely watched by investors, as MongoDB navigates a challenging period with mixed financial guidance and strategic shifts.

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