MongoDB (MDB) Seen as a Leader in Database Growth, BofA Says

MongoDB, Inc. (NASDAQ:MDB) is one of the 10 AI Stocks Analysts Are Watching. On January 30, BofA Securities analyst Brad Sills raised the price target on the stock to $500.00 (from $480.00) while maintaining a “Buy” rating. The firm sees MDB as a leader in database growth, with room for multiple expansion.

BofA’s buy rating on the database vendor is driven by its accelerating Atlas revenue growth, which reached 30% year-over-year in the third fiscal quarter from 29% in the second quarter.

The firm pointed to broader deployments across large corporate customers, continued expansion from existing users, alongside an expanding product portfolio focused on artificial-intelligence use cases and legacy app modernization.

Growing enterprise workloads, the firm noted, also support higher consumption on the platform.

“We raise our PO to $500 from $480 based on 14.2x EV/CY26E revenue multiple (12x EV/CY27E (FY28E) previously) or 0.7x growth adjusted (0.8x previously), a premium to infrastructure software peers at 5.6x/0.5x.”

Analysts believe a premium is warranted given MDB’s faster growth profile and leadership position.

“We revise estimates to reflect our updated view of growth potential.”

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

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