William Blair analyst Jason Ader has reiterated their bullish stance on MDB stock, giving a Buy rating on June 9.
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Jason Ader has given his Buy rating due to a combination of factors that highlight MongoDB’s potential for substantial growth despite current market challenges. He acknowledges the competitive pressures from Postgres and other relational databases but believes that MongoDB’s strengths in flexibility, ease of use, and scalability position it well to capture a significant share of the operational database market. This market is growing at a rate of about 10%, and MongoDB is expected to outpace this growth.
Furthermore, Ader points out that the current market sentiment and valuation have overreacted to these competitive concerns, presenting an opportunity for patient investors. He anticipates a medium-term reacceleration in growth driven by increased investments in sales and marketing, as well as MongoDB’s ability to meet the demands of AI applications. The company’s continued success in attracting new customers and workloads supports the confidence in its competitive advantages and management’s strategy.
Ader covers the Technology sector, focusing on stocks such as MongoDB, CommVault Systems, and NetApp. According to TipRanks, Ader has an average return of 4.6% and a 53.33% success rate on recommended stocks.
In another report released on June 9, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $271.00 price target.