Loop Capital has reaffirmed its confidence in MongoDB , Inc. (NASDAQ: NASDAQ:MDB) by maintaining a Buy rating and a price target of $315.00.
The firm highlighted the stabilization of MongoDB's Cloud Atlas (NYSE:ATCO) business and a modest increase in consumption trends over the past quarter.
The analyst pointed out that operational issues seen in the first quarter have been largely resolved, leading to a positive outlook on the company's cloud segment.
The report indicated that MongoDB's Cloud Atlas business is expected to see Street estimates rise by over 20% for both fiscal years 2025 and 2026.
The projection is bolstered by the anticipation of acceleration in the next fiscal year due to AI tailwinds. Furthermore, approximately half of the revenue upside from the past quarter was attributed to the non-cloud business, which also contributed to at least half of the increase in the fiscal year 2025 revenue guidance.
The industry checks, as per the earnings preview note dated August 26, 2024, corroborate MongoDB's consistent cloud business consumption trend from the first quarter, with a potential uptick. Loop Capital anticipates a significant ramp-up in the fourth quarter driven by large, strategic cloud deployments.
MongoDB has positioned itself as a leading development platform for cloud applications, amassing a community of over 7 million developers. The has led Loop Capital to view MongoDB as a prime investment to capitalize on he major IT trend of migrating workloads to the cloud.
In other recent news, MongoDB has been the subject of various analyst upgrades following a strong quarter. Stifel, for example, raised its price target from $300 to $325, citing MongoDB's impressive 3% revenue beat and improved business acquisition.
Needham also increased its price target for MongoDB to $335, following the company's better-than-expected performance and updated full-year outlook. Similarly, Truist Securities and Scotiabank raised their price targets to $320 and $295 respectively, based on signs of business stabilization and MongoDB's recent quarterly performance.
MongoDB's Q2 results showed a 13% year-over-year revenue increase, reaching $478 million. This was largely driven by the success of its Atlas and Enterprise Advanced (EA) offerings. The company also added more than 1,500 new customers during the quarter, bringing its total customer base to over 50,700.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.