Analyst Bradley Sills from Bank of America Securities reiterated a Buy rating on MongoDB and increased the price target to $345.00 from $275.00.
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Bradley Sills has given his Buy rating due to a combination of factors that indicate MongoDB’s strong growth potential. The company’s recent success in focusing on large accounts with high-quality workloads has led to better expansion deals, while efforts to differentiate in the mid-market have resulted in an improved win rate and significant customer additions. MongoDB’s stock has seen a notable increase, yet it remains reasonably valued on a growth-adjusted basis, suggesting further upside potential.
Additionally, MongoDB’s Atlas platform has shown accelerated growth, with expectations of returning to over 30% growth by year-end. The enterprise agreement business has stabilized, with projections for future growth. Improvements in margin expansion and free cash flow conversion further support a positive outlook, as the company leverages its investments in go-to-market strategies and R&D to maintain its leading position in the unstructured database market.
According to TipRanks, Sills is a 4-star analyst with an average return of 3.4% and a 46.78% success rate. Sills covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and CoreWeave.