MongoDB Inc (NASDAQ: MDB) rallied more than 15% on Thursday after reporting a strong first quarter and raising its guidance for the full year.
The company’s earnings release indicated increased demand from enterprises and startups for modernized software and AI-focused application development.
Including today’s gains, MongoDB stock is up some 70% versus its year-to-date low – but it may still not be too late to invest in the NY headquartered firm, as per experts at Piper Sandler.
Why is Piper Sandler bullish on MongoDB stock?
On Thursday, the investment firm expressed renewed optimism in MongoDB, citing encouraging signs of momentum in its core business.
The company’s Atlas platform, a key driver of growth, posted a 26% year-on-year revenue increase in the first quarter, highlighting ongoing demand for scalable and flexible database solutions.
MongoDB also announced a $1 billion share repurchase programme, signaling robust financial health and a strategic focus on shareholder returns.
The buyback move indicates that the board views the stock as undervalued at current levels.
Adding to investor sentiment, Piper Sandler highlighted its confidence in MongoDB’s leadership team, particularly following the recent appointment of tech veteran Mike Berry as chief financial officer.
Analysts believe these developments could bolster market confidence in the latter half of 2025.
How high could MDB shares go by the end of 2025?
Investors should note that MongoDB stock, despite the massive surge in recent weeks, is still down well over 20% versus its year-to-date high at the time of writing.
According to Piper Sandler analysts, the risk-reward remains favourable in MDB shares.
The software company now expects up to $2.29 billion in revenue in 2026, reflecting confidence in sustained growth.
Following MDB’s earnings release, Piper Sandler analysts raised their price target on the stock to $275, which indicates another 20% upside from current levels.
What else makes MongoDB worth owning at current levels?
MongoDB remains worth owning at current levels also because it added over 2,600 new customers in the first quarter, making it the highest net customer additions in about six years.
Non-GAAP operating margins expanded to 15.9%, up from approximately 10% in the previous quarter, indicating enhanced operational efficiency.
Moreover, despite rivals like Snowflake and Databricks, MDB’s simplicity and cost-effectiveness continue to attract a broad customer base, including 70% of the Fortune 100.
All in all, the $19 billion giant is well-suited for AI-driven applications, positioning the company to benefit from the growing demand for AI capabilities in data management.
That’s why other Wall Street analysts are bullish on MongoDB stock as well.
The consensus rating on the AI stock currently sits at “overweight” with the mean target of $266, indicating potential upside of about 15% from here.
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