What happened
Next-generation database specialist MongoDB (MDB 5.28%) was an outlier stock on Monday. The company's shares rose by just under 5% on the day, thanks in no small part to a price target raise from an already-bullish analyst. With its ascent, MongoDB's stock trounced the S&P 500 index, which could only muster a 0.3% gain.
So what
Well before market open that day, Barclays prognosticator Raimo Lenschow pulled that trigger. He lifted his price target on MongoDB to $280 per share; previously, he had pegged its fair value at $257. In doing so, he maintained his overweight (read: buy) recommendation on the specialty tech stock.
Lenschow's reasoning for the move wasn't immediately apparent, but it's par for the course. Analysts generally are counting on MongoDB to improve its results as the company continues to grow.
On average, according to figures compiled by Yahoo! Finance, they believe it will manage to narrow its net loss considerably this year to $1.02 per share from the 2022 shortfall of $2.23. That should be on the back of modest yet encouraging revenue growth, with the top line adding roughly $40 million to land at $1.16 billion for this year.
Now what
MongoDB certainly has a compelling business proposition, as it specializes in cloud-based database offerings that capture data that more traditional solutions might miss. The company has displayed a good ability to retain customers, and management says that it has been resilient in the face of macroeconomic challenges. However, bigger lurches in the macroeconomy could jeopardize business with its all-important enterprise clients.
