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Sell-side analysts are growing increasingly bullish on MongoDB (NASDAQ:MDB), following the company’s strong Q3 earnings report that sent shares soaring.
MongoDB stock is up over 40% since early December after the company reported its revenue increased by 47% year-over-year (YoY) while EPS also came in comfortably ahead of the average analyst consensus.
“The strength in our business was driven by improved Atlas consumption trends and continued strength in new business activity,” the company said in a statement.
Strong Q3 results prompted MDB to raise its full-year revenue forecast. In the aftermath of the Q3 earnings report, Citi analysts promoted MDB stock to Top Pick designation in the firm’s software coverage.
The results will pivot “the focus back to its longer-term attractive growth story having one of the largest TAMs in software,” the analysts claim in a note.
Their comments come a day after Wedbush initiated research coverage on MongoDB with an Outperform rating and a $240 per share price target.
“MongoDB has been expanding its use cases, and is a popular general-purpose database used for a variety of applications by enterprises of all sizes… We are positive on the company’s product leadership, execution and large addressable market,” the Wedbush analysts said in a note.
MongoDB shares, which are down 60% year-to-date (YTD), are trading over 2% in the red in pre-open Thursday.
