On Friday, DA Davidson maintained its Buy rating on MongoDB (NASDAQ: NASDAQ:MDB) and raised the price target to $340 from the previous $330. The firm's analyst highlighted a recent discussion with MongoDB management to gain a clearer understanding of the company's second-half fiscal year 2025 outlook, competitive dynamics, and the progression of workloads related to Generative AI, among other topics.
The analyst noted that while the outlook for the second half of the fiscal year 2025 remains conservative, it is not without risks. Additionally, the perceived slowdown in the growth of Atlas (NYSE:ATCO), MongoDB's database as a service offering, is less severe than it seems once adjustments for certain one-time headwinds faced this year are made.
The firm underscored the challenges of holding MongoDB stock for those with a short-term investment horizon due to the unpredictable nature of consumption growth trends. Despite these challenges, DA Davidson continues to support the stock for long-term investors.
The analyst's commentary concluded with a reinforcement of the Buy rating on MongoDB shares, coupled with the updated price target. This adjustment reflects a positive stance on the company's prospects and the belief that MongoDB will continue to perform well over an extended period.
In other recent news, MongoDB, Inc. has been the focus of several positive analyst reviews following a strong second quarter performance. The company's Q2 results showcased a 13% year-over-year revenue increase, totaling $478 million, largely driven by the success of its Atlas and Enterprise Advanced offerings. MongoDB added more than 1,500 new customers during the quarter, bringing its total customer base to over 50,700.
Looking ahead, MongoDB's management anticipates Q3 revenue to be between $493 million to $497 million, with full fiscal year 2025 revenue projected to be between $1.92 billion to $1.93 billion. These projections are based on MongoDB's recent performance and the analyst firms' expectations.
Piper Sandler maintains an Overweight rating on MongoDB shares, despite a recent decline in growth. DA Davidson and KeyBanc Capital Markets, among others, have increased their price targets due to the company's impressive performance. Loop Capital maintains a Buy rating, highlighting the stabilization of MongoDB's Cloud Atlas business and a modest increase in consumption trends over the past quarter.
InvestingPro Insights
To complement DA Davidson's analysis, InvestingPro data offers additional insights into MongoDB's financial position and market performance. As of the latest data, MongoDB boasts a market capitalization of $21.62 billion, reflecting its significant presence in the database technology sector.
InvestingPro Tips highlight that MongoDB holds more cash than debt on its balance sheet, indicating a strong financial position that aligns with the long-term investment perspective suggested by DA Davidson. This solid financial footing could provide MongoDB with the flexibility to navigate the unpredictable consumption growth trends mentioned in the analyst's report.
Furthermore, InvestingPro data shows that MongoDB's revenue for the last twelve months as of Q2 2025 stood at $1.82 billion, with a revenue growth of 22.37% over the same period. This growth, coupled with the InvestingPro Tip that net income is expected to grow this year, supports DA Davidson's optimistic long-term outlook for the company.
It's worth noting that 22 analysts have revised their earnings upwards for the upcoming period, according to InvestingPro Tips. This consensus aligns with DA Davidson's decision to raise the price target, suggesting a broader positive sentiment among market experts.
For investors interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for MongoDB, providing a deeper understanding of the company's financial health and market position.
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