MongoDB (MDB) PT Lowered to $160 at Scotiabank

Scotiabank analyst Patrick Colville lowered the price target on MongoDB (NASDAQ: MDB) to $160.00 (from $240.00) while maintaining a Sector Perform rating.

The analyst commented: "We’ve been a bit bearish on MongoDB over the past year due to our concerns around heightening competitive pressure, that we aren’t seeing much traction in vector search, and that it's too early to call out any AI tailwinds. With MDB shares near 52-week lows we spoke with 7 executive IT decision makers to get a real time health check on demand trends. Our fieldwork unfortunately continues to point to MongoDB winning a smaller portion of net new database workloads - and we wonder whether app development and usage, and thus database spend, on public cloud could be impacted by the worsening macro as it was in 2HC22 and 1HC23. We think only a moderate beat and raise cadence to F26 revenue guidance is the most likely scenario, and not enough to put company-specific MongoDB bear narratives to bed. MongoDB is undoubtedly a hall of fame cloud company, with many positive attributes. Nonetheless, given the takeaways from our checks, even if the market switches back to risk-on, we regrettably don’t think investors should rush back into MDB. We recently reiterated our “Be Cautious” call on MongoDB in our coverage."

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