MongoDB’s Strong Performance and Growth Prospects Drive Buy Rating and Increased Price Target

Bernstein analyst Firoz Valliji has maintained their bullish stance on MDB stock, giving a Buy rating today.

Firoz Valliji has given his Buy rating due to a combination of factors that highlight MongoDB’s strong performance and promising outlook. The company has demonstrated impressive revenue growth of 22%, along with the strongest net new additions in six years, which indicates robust demand for its services. Additionally, MongoDB has raised its fiscal year guidance, reflecting confidence in its future performance.
Moreover, the company’s operating margin has exceeded expectations, showing a 200 basis point increase, and it has authorized an additional $800 million for share repurchases, signaling a commitment to returning value to shareholders. Valliji also notes the improvement in net revenue retention, which has increased to 119, and the significant contribution of the cloud business, which constitutes 72% of revenue and is growing at 26%. These factors, combined with a conservative guidance approach, suggest a stable revenue base and a favorable setup for future growth, leading to an increased price target from $312 to $319.

According to TipRanks, Valliji is an analyst with an average return of -10.2% and a 20.00% success rate.

In another report released today, Guggenheim also maintained a Buy rating on the stock with a $260.00 price target.