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Investing.com - UBS raised its price target on MongoDB (NASDAQ:MDB) to $440 from $330 while maintaining a Neutral rating following the company’s third-quarter results. MongoDB shares currently trade at $410.60, near their 52-week high, with InvestingPro data indicating the stock appears overvalued compared to its calculated Fair Value.
MongoDB reported 30% growth in its Atlas cloud database service, slightly ahead of UBS’s 29% projection, and delivered a 6.1% total revenue beat relative to guidance, which exceeds the company’s 5.7% average beat over the previous four quarters. The company’s overall revenue growth stands at 21.9% for the last twelve months.
The database company showed particular strength in its on-premises Enterprise Advanced product line, benefiting from multi-year deals, while also posting strong non-GAAP operating margins of 19.6%. InvestingPro data reveals MongoDB maintains a healthy current ratio of 5.7, with more cash than debt on its balance sheet.
UBS noted that MongoDB’s fourth-quarter revenue guidance of $670 million at the high end was the most significant upside versus expectations, implying approximately 27% total revenue growth—a substantial acceleration from the 19-24% growth rates seen in each of the previous four quarters.
While MongoDB indicated that enterprise spending on agentic AI applications is likely 4-6 quarters away, UBS observed that an indirect AI-induced increase in data spending appears to be occurring now, with the new CEO’s emphasis on MongoDB as a data platform potentially signaling plans to expand into adjacent areas.
In other recent news, MongoDB has reported third-quarter results that exceeded analyst expectations, leading to several adjustments in stock price targets by various firms. KeyBanc Capital Markets noted that MongoDB’s revenue for the quarter surpassed projections by $37 million, marking a 6% beat consistent with previous performance. Following these strong results, MongoDB raised its full-year guidance, citing broad-based demand and steady consumption patterns. This positive momentum has prompted Oppenheimer to raise its price target for MongoDB to $450 while maintaining an Outperform rating.
Similarly, Piper Sandler increased its price target to $490 from $400, highlighting the accelerating growth of MongoDB’s Atlas platform, which achieved a 30% year-over-year increase. DA Davidson also raised its price target to $465, maintaining a Buy rating and noting a strong beat and raise in the company’s quarterly results. Bernstein SocGen Group followed suit, increasing its price target to $452 from $338, while maintaining an Outperform rating. These developments reflect a positive outlook from analysts, driven by MongoDB’s robust performance and growth prospects.
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