MongoDB shares received price-target hikes from several analysts, on the database platform's fiscal-second-quarter results that surpassed expectations.
For the quarter ended July 31, MongoDB incurred a loss of -24 cents a share, compared with -39 cents a share loss expected by analysts polled by FactSet.
Revenue rose +44% from the year-ago quarter to $198.7 million, beating analysts' expectations of $182.4 million.
Oppenheimer analyst Ittai Kidron boosted the price target to $470 from $400. Kidron affirmed his outperform rating on the company’s shares. According to Kidron, MongoDB had a "strong" July quarter, with revenue and loss per share beating estimates on the back of robust subscription revenue growth and an "impressive" performance from Atlas. He noted that Atlas is increasingly becoming MongoDB's primary growth engine. Looking forward, the analyst expects continued investment in C-level engagement to bolster long-term expansion.
Barclays analyst Raimo Lenschow hiked his price target on MongoDB shares to $505 from $420, while maintaining his overweight rating on the shares. Lenschow said that investor focus for the second quarter was on the performance of Atlas, and the results "did not disappoint." Atlas has a run rate above $400 million. He said the performance would lead to analysts revising their estimates upward. Lenschow indicated that based on MongoDB's continued product enhancements and sales motion evolution, he is sanguine that the company "has a long growth runway ahead."
Canaccord analyst David Hynes raised his price target on MongoDB shares to $290 from $245, while keeping a buy rating on the shares. According to Hynes, the stock is expensive but the company has one of the largest still growing total addressable markets. The analyst said that favorable secular trends will boost both new and expansion opportunities.