MongoDB (MDB) PT Raised to $425 at Stifel; 'FY26 Set-Up Looks Solid'

Stifel analyst Brad Reback raised the price target on MongoDB (NASDAQ: MDB) to $425.00 (from $360.00) while maintaining a Buy rating.

The analyst said: "MongoDB is one of the leading vendors in the burgeoning NoSQL database market. Since launching to the open-source community in 2009, MongoDB's core database server has been downloaded over 30 million times. We believe the company is well positioned to drive healthy double-digit recurring revenue growth and margin expansion over the coming years, given its platform is leveraged to benefit from the positive secular trends associated with the explosion in unstructured data, businesses being increasingly technology-oriented, and growing demand/interest in the cloud.

Mongo posted a solid quarter, as revenue beat consensus by 6% (vs. ~3% Q/Q) and OM was >700bps better, driven by consumption growth that modestly outperformed expectations and a strong EA new business quarter that was aided by ~$15M in multi-year upfront revenue recognition driven by customer expansions. Importantly, management announced a pivot towards expanding its Enterprise strategic account program, which has a significantly higher ROI vs. other direct sales accounts.

Looking forward, while management expects a Q/Q decline in EA/Other revenue and seasonal Atlas consumption slowdown in 4Q, we view the guide as conservative given it assumes revenue declines ~ $12M Q/Q. Net/net, we believe results highlight improving execution, which combined with a stronger focus on higher growth potential enterprise customers, an expanding set of core and emerging growth drivers, and growth/ margin accretive investments, should enable Mongo to sustain 20%+ revenue growth and incremental levels of profitability/cash-flow in coming years."

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