MongoDB could become disrupter in database software market, says Argus

Argus keeps a Buy rating and $484 price target on MongoDB but notes that the company could become a disrupter in the large enterprise database software market, with the opportunity to gain market share as enterprises see the value in a more flexible and extensible database system and continue to migrate more IT workloads to the cloud. The firm supports MongoDB management’s deliberate strategic decision to compress operating margins in FY25 by investing in its go-to-market opportunities and ramping its salesforce, even though this goes directly against the prevailing market sentiment to reward margin expansion and punish margin compression, Argus added.