Analyst Sanjit Singh of Morgan Stanley maintained a Buy rating on MongoDB, boosting the price target to $400.00.
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Sanjit Singh has given his Buy rating due to a combination of factors that highlight MongoDB’s promising growth prospects. The company is experiencing improved growth rates in its core operational database workloads, driven by strategic moves such as pushing up-market and implementing new sales incentives. This momentum is expected to continue as the high-quality workloads from FY25 and FY26 ramp up into FY27, providing a solid foundation for sustainable growth.
Moreover, Singh points to the significant opportunity in application modernization, where customers migrate legacy applications to modern architectures powered by MongoDB. This opportunity is estimated to be worth $18 billion and could start contributing to MongoDB’s growth within the next 12-18 months. Despite uncertainties around the timing of the AI application cycle, the potential for app modernization offers a substantial growth vector, justifying the Buy rating and an increased price target.
In another report released on November 4, BMO Capital also maintained a Buy rating on the stock with a $415.00 price target.