Analysts at Wedbush remain bullish on MongoDB Inc (NASDAQ:MDB), raising their price target to $400 from $300 and adding the document database company to its Best Ideas List.
Wedbush reiterated its ‘Outperform’ rating on the company, citing accelerating momentum in enterprise adoption and expanding use cases tied to artificial intelligence.
“We are raising our price target of MongoDB to $400 from $300 as the company shifts its focus on upmarket opportunities across enterprise channels, specifically within US Enterprise, while seeing stability in the mid-market, pointing to the incremental success MongoDB is having in this AI Revolution,” the analysts wrote.
The firm pointed to MongoDB’s most recent quarter, where Atlas consumption trends re-accelerated and customer growth reached record levels.
“With the company’s Atlas platform gaining traction among new customers with the highest year-to-date customer count additions in MongoDB’s history, the company continues to attract customers within the enterprise AI space,” Wedbush wrote.
The analysts added that MongoDB is strengthening its product innovation engine to deliver new AI use cases and capture market share.
Wedbush noted that enterprises across industries are encountering challenges with large-scale AI deployments, creating opportunities for MongoDB.
Atlas, now a $2 billion revenue business, remains a key driver but is “still in the early innings” of its AI impact, according to Wedbush.
The firm said the bulk of growth continues to come from MongoDB’s core business, but the company is well-positioned as organizations look to build customized AI applications while balancing scalability, security, and cost.
The recent acquisition of Voyage, which contributed about 300 of the 2,800 new customers in the last quarter, was also highlighted as a strategic move.
Wedbush said the deal “enhances its AI capabilities by embedding models directly into its platform for mission-critical workflows” and opens up “significant cross-sell opportunities across its existing installed base.”
Despite MongoDB’s progress, Wedbush emphasized that its market share remains relatively small.
“With MongoDB still only having 2% market share within this $100 billion+ total addressable market, we believe the company provides necessary capabilities to all organizations to improve AI use cases further positioning MongoDB to gain further share across its mid-market and enterprise customer segments,” they wrote.
Shares of MongoDB closed at about $335 on Monday, up almost 45% this year.