What happened
Shares of MongoDB (MDB 2.13%) jumped again today on continued momentum from yesterday's earnings pop, closing out the session up 14%. There was no company-specific news, but the tech sector enjoyed a broad-based rally after selling off aggressively yesterday. Lawmakers are also reportedly making progress on stimulus negotiations.
So what
The database technology company had reported strong third-quarter results on Tuesday evening, and the stock has now soared to all-time highs in the days since. In the wake of the report, a slew of analysts increased price targets yesterday, which may have contributed to today's momentum.
- Piper Sandler: Maintains overweight rating, increases price target from $310 to $328.
- Needham: Reiterates buy rating, boosts price target from $290 to $341.
- DA Davidson: Keeps neutral rating, raises price target from $250 to $275.
- Goldman Sachs: Maintains neutral rating, increases price target from $245 to $280.
- Canaccord Genuity: Keeps buy rating, raises price target from $290 to $315.
- Oppenheimer: Reiterates outperform rating and price target of $300.
Image source: Getty Images.
Now what
Analysts were encouraged by MongoDB's strong customer additions, which will pave the way for future growth.
"MongoDB demonstrated exemplary execution in a challenging macro environment as Atlas expansion trends fully recovered while customer growth was robust," Oppenheimer analyst Ittai Kidron wrote in a research note to investors. "While management still appears conservative near term, we remain bullish given stronger customer usage/growth trends."
Piper Sandler analyst Brent Bracelin said MongoDB's quarter boosted investor confidence in management, and that the company should be able to continue growing sustainably. Canaccord analyst David Hynes added that this was the fifth consecutive quarter of strong customer additions, recommending that investors take advantage of any pullbacks to buy shares.
"Consumption expansion in 3Q also returned to pre-COVID levels, which benefits growth in new/existing accounts," according to Needham analyst Jack Andrews. "Consistent with our prior thesis, we believe strength in Atlas will accelerate total revenue growth beyond FY22."
