MongoDB (MDB) Outlook Strengthens Following Q3 Results, UBS Maintains Neutral Rating

MongoDB Inc. (NASDAQ:MDB) ranks among the best high growth stocks to buy now. Following MongoDB Inc. (NASDAQ:MDB)’s third-quarter results, UBS boosted its price target to $440 from $330 while keeping a Neutral rating on the company’s shares. MongoDB Inc. (NASDAQ:MDB) announced third-quarter revenue that came in above analyst expectations by $37 million, a 6% increase that was in line with its performance the prior quarter.

The company’s Atlas cloud database service maintained its momentum, increasing by one percentage point to hit a 30% year-over-year growth, with demand described as broad but likely headed by large enterprise customers. The company also saw exceptional strength in its on-premises Enterprise Advanced product line, profiting from multi-year agreements.

According to UBS, MongoDB’s high-end fourth-quarter projected revenues of $670 million represented the greatest increase compared to forecasts, suggesting a 27% increase in total revenue.

Although MongoDB Inc. (NASDAQ:MDB) stated that enterprise spending on agentic AI applications is probably 4-6 quarters away, UBS noted that an indirect AI-induced spike in data spending appears to be taking place, with the new CEO’s focus on MongoDB Inc. (NASDAQ:MDB) as a data platform possibly indicating plans to expand into other regions.

MongoDB Inc. (NASDAQ:MDB) provides general purpose database platform worldwide. The company’s core offerings include MongoDB Atlas, MongoDB Enterprise Advanced, and Community Server.

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Disclosure: None. This article is originally published at Insider Monkey.