Oppenheimer has maintained its Outperform rating on MongoDB , Inc. (NASDAQ: NASDAQ:MDB), and raised the price target to $350 from the previous $300.
The adjustment followed MongoDB's strong second quarter for fiscal year 2024, where the company surpassed consensus estimates and increased its guidance for the third quarter and full fiscal year 2025 above expectations.
The company's management credited the quarter's success to enhanced sales execution within its Atlas (NYSE:ATCO) and Enterprise Advanced (EA) segments. This positive development comes after what was described as an uncharacteristically mixed start to the year. Despite this turnaround, MongoDB's management has decided to maintain its growth targets for Atlas consumption in the third and fourth quarters, citing a cautious stance in light of the current macroeconomic environment.
MongoDB's management has adjusted its full fiscal year 2025 guidance upward, reflecting the strong performance in the second quarter. However, they have also prepared for potentially challenging year-over-year comparisons in Atlas growth and a less robust seasonal rebound in the second half of the year.
The analyst from Oppenheimer highlighted MongoDB's potential, noting the company's promising opportunities in emerging technologies such as Vector Search, Stream Processing, and GenAI workloads.
In other recent news, MongoDB has seen significant attention from various analyst firms following a strong quarter. Loop Capital maintained a Buy rating for MongoDB with a price target of $315, highlighting the stabilization of MongoDB's Cloud Atlas business and a modest increase in consumption trends over the past quarter.
Similarly, Stifel raised its price target from $300 to $325, Needham increased its price target to $335, Truist Securities to $320, and Scotiabank to $295, all in response to MongoDB's impressive performance and business stabilization.
MongoDB's Q2 results showcased a 13% year-over-year revenue increase, reaching $478 million, largely driven by the success of its Atlas and Enterprise Advanced offerings. The company added more than 1,500 new customers during the quarter, bringing its total customer base to over 50,700.
Looking ahead, MongoDB's management anticipates Q3 revenue to be between $493 million to $497 million, with full fiscal year 2025 revenue projected to be between $1.92 billion to $1.93 billion. Piper Sandler, which raised its price target for MongoDB to $335, anticipates that the company's growth will normalize above 20% by the end of next year.
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