RBC Capital Raises MongoDB PT to $350, Reiterates Outperform Rating

RBC Capital Raises MongoDB PT to $350, Reiterates Outperform Rating

RBC Capital Markets has raised its price target on MongoDB Inc. (NASDAQ: MDB) to $350 from $320, while maintaining an Outperform rating on the database software company. The move follows MongoDB's strong second-quarter results, which featured accelerating Atlas growth of 29% year-over-year, better-than-expected operating leverage, and revenue, earnings per share, and free cash flow that exceeded expectations [2].

MongoDB's Atlas cloud service demonstrated impressive growth, accelerating to 29% compared to 26% in the previous quarter. The company's operating income and free cash flow margin also outperformed expectations, with the latter exceeding consensus by 1,200 basis points. The stock jumped 30% after the market closed following the earnings announcement, driven by broad-based strength across both enterprise expansion and continued self-serve momentum [2].

The price target increase reflects MongoDB's strong performance and growth initiatives. The company's gross margins remain impressive at 72.89%, and its liquidity is robust, with a current ratio of 5.89. MongoDB's management has raised its full-year guidance across all metrics, indicating a positive outlook for execution, profitability, and Atlas durability into the second half of the year [2].

Several analyst firms have adjusted their outlooks on MongoDB following the strong results. BofA Securities raised its price target to $345 from $275, maintaining a Buy rating. JMP Securities reiterated its Market Outperform rating and a $345 price target. Goldman Sachs increased its price target to $325 from $270, also maintaining a Buy rating. These developments highlight MongoDB's strong performance and growth initiatives [2].

References:
[1] https://finance.yahoo.com/news/mongodb-mdb-sees-higher-fy2026-050536692.html
[2] https://www.investing.com/news/analyst-ratings/mongodb-stock-price-target-raised-to-350-from-320-at-rbc-capital-93CH-4212339