Investing.com -- MongoDB shares gained over 2% in premarket trading on Tuesday after Citi analysts reiterated a Buy rating on the stock and raised their price target to $450 from $400, citing accelerating AI-driven demand for the company’s cloud database product.

MongoDB shares have fallen roughly 30% this year, weighed down in part by a disappointing outlook the company issued in March that forecast first-quarter profit below analyst estimates and pointed to slower revenue growth for Atlas, its cloud-hosted database service.

Citi analysts argued that MongoDB is "bucking the trend of a weaker traditional software budget environment, as more agents and “vibe-coded” applications expand MDB’s universe by driving demand for write-heavy, schema-evolving operational workloads." Vibe-coding refers to building software rapidly using AI coding assistants.

"Put simply, we see MongoDB as both a direct and indirect beneficiary of the explosive growth of frontier labs and AI coding tools," they added.

Citi said it conducted proprietary customer and partner checks, suggesting meaningful Atlas usage ramps are already underway in the current quarter at several prominent AI customers.

Based on that work, the analysts built an updated AI customer model, estimating that the growing AI momentum could lift first-quarter Atlas growth by roughly two percentage points compared to the fourth quarter, pushing Atlas growth above 30%. They project that figure could rise further by year’s end.

As a result, Citi raised its Atlas estimates well above guidance and consensus, modeling 30% growth for both the first quarter and full fiscal year 2027.