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Investing.com -- Bank of America raised its price objective for MongoDB (NASDAQ: MDB) to $440 from $380 and reiterated its Buy rating on the stock in a note Tuesday, saying the appointment of CJ Desai as chief executive officer positions the company for its “next phase of scale and enterprise growth.”
Analyst Brad Sills stated that Desai’s appointment “comes at an opportune time as MongoDB positions itself to be the database of choice for AI workloads.”
The company also expects third-quarter results “to come in above the top end of guidance,” which BofA said underscores “strong near-term execution and a supportive backdrop for the leadership transition.”
The firm raised its fiscal 2026 Atlas growth forecast to 26% from 25% and lifted its valuation multiple to 11 times estimated 2027 enterprise value-to-sales, citing “durable growth.”
BofA described Desai as a “proven operator” with deep product and engineering roots, noting that he helped drive ServiceNow’s expansion from roughly $1 billion to $10 billion in revenue and later accelerated growth at Cloudflare from 25% to nearly 30%.
“Desai noted his early strategic priorities include positioning MongoDB as the database of choice as workloads are rearchitected for an AI era,” the firm wrote, adding that this should “support wallet share expansion at existing customers and drive new enterprise adoption.”
BofA added that recent data also supports improving demand trends, with Atlas visits rising 5.6% year over year in September, up from 4.7% in August.
“This is a continuation of the recent trend of modest seasonal outperformance,” the firm said, pointing to “stable and healthy consumption.”