On Wednesday, Wells Fargo maintained its Overweight rating on MongoDB (NASDAQ:MDB) stock, with a steady price target of $450.00. The firm highlighted that MongoDB is set to announce its first-quarter results for fiscal year 2025 on Thursday, May 30, at 5:00 PM ET.
Despite MongoDB's shares falling by 12.4%, underperforming compared to the NASDAQ's gain of 5.8% since its last earnings report, the firm's stance remains unchanged.
The analyst expressed concerns that investors might not have fully accounted for the $80 million in one-time headwinds from the previous year that are expected to affect growth for both the first quarter and the full fiscal year of 2025. The one-time costs had a negative impact on the company's growth trajectory.
Wells Fargo's analysis suggests that, in spite of these challenges, MongoDB is still positioned to achieve mid to high-20s percentage growth in the fiscal year 2025. The firm's confidence in MongoDB's performance potential is reflected in the reaffirmed price target and rating.
The upcoming earnings report will provide further insight into MongoDB's financial health and whether the company has been able to navigate the headwinds as projected by the firm. Investors and stakeholders will be watching closely to see if the company's growth aligns with the firm's expectations.
InvestingPro Insights
As MongoDB prepares to release its Q1 2025 results, a glimpse into real-time data and InvestingPro Tips could be pivotal for investors. With a market capitalization of $24.64 billion, MongoDB's growth trajectory is underscored by a robust revenue growth of 31.07% in the last twelve months as of Q4 2024. This aligns with Wells Fargo's projection of mid to high-20s percentage growth, despite a notable decline in the stock price over recent months, including a 24.96% drop over the last three months.
InvestingPro Tips highlight that while MongoDB has been operating with a moderate level of debt, it is not profitable over the last twelve months. However, analysts predict the company will turn a profit this year, which could signal a potential rebound. Additionally, MongoDB's liquid assets exceed its short-term obligations, providing the company with a cushion against financial uncertainties. For investors seeking deeper insights, InvestingPro offers 20 additional tips on MongoDB, accessible through InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The upcoming earnings report will be a critical moment for MongoDB, potentially validating Wells Fargo's Overweight rating and $450.00 price target. With the firm's anticipation of a strong performance, stakeholders will be keen to see if MongoDB's financial health reflects the resilience and growth potential that analysts expect.
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