Normally, when an analyst starts coverage of a company and is positive about it, that does wonders for share prices. However, that’s not what MongoDB (NASDAQ:MDB) saw recently. Despite a new analyst chipping in positive commentary, it’s still down in Friday’s trading. The latest word came from Bernstein analyst Mark Moerdler, who had very exciting things to say about the company, perhaps the best of which was calling it a “best-of-breed, new-generation database vendor.”
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Further, Moerdler noted that the market is actively underestimating the growth potential at MongoDB. That’s especially true given that the entire database software market is big and getting bigger still. By 2025, it should be worth around $37 billion. Thus, not only did Bernstein end up giving MongoDB an “outperform” rating but also a share price target of $282.
Certainly, recent earnings data does support this theory. A couple months back, when MongoDB released its earnings reports, analysts were expecting a loss. Instead, it posted positive earnings, a revenue beat, and offered up solid guidance. Throw in recent partnership efforts with Microsoft (NASDAQ:MSFT), and that makes things even better going forward.
Overall, analyst consensus calls MongoDB a Strong Buy. Plus, with an average price target of $260.81, it has 22.36% upside potential.
