MongoDB Jumps as Quarterly Report Prompts Bullish Analyst Remarks

MongoDB reported a narrower-than-expected adjusted first-quarter loss and revenue ahead of expectations. It also raised its revenue guidance.
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Shares of MongoDB  (MDB) - Get Report jumped after the database platform's first-quarter report prompted largely bullish comments from Wall Street's analysts. 

For the quarter ended April 30 the New York company reported an adjusted net loss of 15 cents a share on revenue of $181.6 million. Analysts surveyed by FactSet were expecting a loss of 37 cents a share on revenue of $169.9 million. 

MongoDB shares at last check were 11% higher at $301.74. 

Analysts at Citi maintained a buy rating on the company, saying demand trends are reaccelerating as the economy recovers from the pandemic.

Morgan Stanley affirmed an overweight rating with a $377 price target. MongoDB's cloud business is "firing on all cylinders" and the report showed "clear evidence of market share gains in cloud," the investment firm said.

Barclays reiterated an overweight rating and $390 price target. The results make "a clear argument that the company is now an almost full-fledged cloud provider that deserves to trade on a higher multiple," the firm said. It called MongoDB a "structural growth story" with a large total addressable market. 

Piper Sandler reiterated an overweight rating with a $425 target. The company has "a compelling growth trajectory with the potential to expand revenue at least 5 times over the next six years," the firm said.

At Canaccord Genuity, analyst David Hynes Jr. said “MDB shares are expensive, but ... that’s for a good reason. … MDB should be a core holding for long-term growth investors, and we’d look to pullbacks to add in the stock.”

For the year MongoDB expects revenue between $771 million and $784 million, up from its previous estimated range between $745 million and $765 million. Analysts are expecting revenue of $780 million.