Key Takeaways
- Several Wall Street analysts raised their price targets for MongoDB’s stock after the company posted strong quarter results and raised its outlook.
- The company’s Atlas multi-cloud database subscription offering saw its highest total net customer additions in six years.
- Analysts said that growth runs counter to the recent bearish narrative around the company.
Shares of AI-powered software provider MongoDB (MDB) surged Thursday as the company’s strong quarterly results and improved outlook drew price target hikes from analysts.
The company’s Atlas multi-cloud database subscription offering saw its highest total net customer additions in six years, which Morgan Stanley analysts said “flies in the face of the bear case narrative that MongoDB is losing [market] share.” The bank lifted its target to $255 from $235.
MongoDB shares added nearly 13% Thursday to close at $225.38, with Morgan Stanley’s target suggesting the stock could stand to climb another 13%. Still, the stock has lost about 3% year-to-date, after plunging in March on disappointing results a quarter ago.
Citi analysts were even more bullish following the results, raising their target to $395 from $330. The bank called MongoDB’s results a “convincing rebuke to the ongoing narrative of increasing competition and diminishing developer mindshare.” Meanwhile, UBS analysts raised their target to $240 from $213.
MongoDB reported first-quarter revenue of $549 million, up 22% year-over-year, which CEO Dev Ittycheria attributed to enterprise clients choosing its software to modernize existing AI applications and build new ones.
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