Shares of MongoDB (Nasdaq:MDB) have been on the rise ever since the multi-purpose database platform provider released better-than-expected fiscal Q3 results. A 50% year-over-year revenue surge was a key catalyst, as it handily beat Street expectations.
Moreover, the loss-per-share was much narrower than what Street analysts had expected, and that was positive for investor sentiments.
Importantly, today MongoDB stock mong the top analyst recommended stocks featured on TipRanks, with a Strong Buy rating on the stock, based on 11 Buys and 3 Holds.
Significantly, the third raise of the year in management’s outlook buoyed the analyst consensus sentiment. The company currently expects around $848 million of annual revenues, for the fiscal year 2022. MongoDB had initially guided annual revenues of $755 million in March, following which it raised its annual revenue guidance to around $808 million in September.
Importantly, MongoDB’s database managing cloud service —Atlas —delivered another strong quarter, with an 84% year-over-year growth. Enterprises are continuously deploying mission-critical services on the cloud and acquiring new logos, thus increasing the demand for Atlas. Notably, 500 customers were added to Atlas during the quarter, pulling up the total number of customers to 29,500.
Website Traffic Looks Encouraging
An additional piece of information that we found out from TipRanks’ Website Traffic tool is that the year-to-date visits to the MongoDB website from unique users increased 24.3%, when compared to the same period last year. The website traffic tool derived the company’s website traffic volume from data sourced from Semrush.
This growing interest in MongoDB’s services, though not the only indication of strong sales performance, points towards a quarter of good business.
Experts’ Take
Macquarie analyst Frederick Havenmeyer weighed in on the stock yesterday, after following the Q3 performance patterns carefully. “We think strong early Atlas renewals are a positive trend of customers rapidly growing Atlas consumption & locking in pricing for expected growth,” he opined.
Havenmeyer reiterated a Buy rating on the stock and raised his price target to $552 from $450, encouraged by the company’s “unique, natively multi-cloud platform loved by developers & enabling enterprise agility.”
The average MongoDB stock price target among Wall Street analysts is $574.42, which indicates an upside potential of 14.93%.
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Disclosure: At the time of publication, Chandrima Sanyal did not have a position in any of the securities mentioned in this article.
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