MongoDB Stock (MDB) Gains as Stifel Sees Strong Growth and Profitability Ahead

MongoDB, Inc. (NASDAQ:MDB) is one of the AI Stocks Making Big Moves on Wall Street. On September 18, Stifel analyst Brad Reback raised the price target on the stock to $375.00 (from $325.00) while maintaining a Buy rating.

According to the firm, management has presented a “compelling case” during the company’s Analyst Day and User Conference related to the company’s potential to sustain robust top-line growth and profitability.

“During Mongo’s analyst-day/user-conference we believe management presented a compelling case it can sustain strong top line growth and accelerate profitability as the company gains share across the traditional database market, especially among larger enterprises, makes AI inroads given the Mongo’s architectural advantages and the completeness of its platform (vector search, embeddings, etc.) and benefits over-time from SQL migrations due to its maturing application modernization platform (AMP), all while co-existing with Postgres (see customer/ partner comments below)."

"On the profit front we expect sustained S&M leverage as the company benefits from the flywheel of increasingly successful self-service customer engagement that helps to make the entire GTM motion more efficient which should allow management to effectively fund its R&D initiatives. The net result is management’s very realistic/conservative long-term financial framework (3-5 years) that calls for a balanced mix of growth (high-teens, >20% Atlas growth) and profitability (>20% OM, 100-200bps OM expansion/yr).”

MongoDB, Inc. (NASDAQ:MDB) provides a general-purpose database platform worldwide that integrates operational, unstructured, and AI-related data to streamline building applications.

While we acknowledge the potential of MDB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks You Should Not Ignore and 10 AI Stocks in Focus on Wall Street.

Disclosure: None.