Redburn downgrades MongoDB to Sell on lack of AI advantage

Redburn Atlantic downgraded MongoDB to Sell from Neutral with a price target of $295, down from $410. MongoDB lacks a clear generative artificial intelligence advantage, posing a budget reallocation risk that the stock’s current valuation does not reflect, the analyst tells investors in a research note. The firm says that while the company has “theoretical tailwinds” and the potential to integrate with enterprise knowledge bases, rising costs, especially for storage, push organizations to optimize, potentially limiting MongoDB’s upside due to its relatively high price point. Redburn sees the value in the technology but believes consensus expectations are overly optimistic at current valuation levels.