Monness analyst Brian White has maintained their neutral stance on MDB stock, giving a Hold rating on May 27.
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Brian White has given his Hold rating due to a combination of factors impacting MongoDB’s current and future performance. MongoDB is navigating a transition year with a new CFO, and while it has the potential to capitalize on long-term trends in the database, cloud, and AI sectors, it faces intense competition and a challenging macroeconomic environment. The company’s revenue growth projections are positive, but there is a noted decline in operating margins and a slight decrease in quarterly revenue compared to historical averages.
Additionally, MongoDB’s Atlas service, despite being a significant revenue contributor, has experienced a prolonged deceleration in growth, which raises concerns about its future trajectory. The company is also dealing with a $50 million headwind from multi-year license revenue and plans to increase spending on R&D and marketing. These factors contribute to the cautious outlook, leading to the Hold rating as the company works through these transitional challenges.
White covers the Technology sector, focusing on stocks such as Box, PagerDuty, and MongoDB. According to TipRanks, White has an average return of 17.7% and a 67.15% success rate on recommended stocks.
In another report released on May 27, UBS also maintained a Hold rating on the stock with a $213.00 price target.