Market Overview

Analyst Downgrades Mongodb To Reflect 'Intense Competition'

Analyst Downgrades Mongodb To Reflect 'Intense Competition'
Related MDB
Benzinga's Top Upgrades, Downgrades For October 17, 2018
MongoDB Acquires mLab, Expands Global Cloud Database
Canadian Solar, Revolution Lighting and Switch among tech movers (Seeking Alpha)

The market opportunity for Mongodb Inc (NASDAQ: MDB), a software developer behind the open source database MongoDB, is not compelling — at least in the near term, according to Nomura Instinet.

The Analyst

Analyst Christopher Eberle downgraded Mongodb from Neutral to Reduce and increased the price target from $43 to $63.

The Thesis

The market opportunity for Mongodb is a multiyear — if not multidecade — one, given the intense competition and "deep-pocketed incumbency," Eberle said in a Tuesday note. (See his track record here.) 

MongoDB has competition from Microsoft Corporation (NASDAQ: MSFT)'s Cosmos DB, which has grown from zero to $100 million-plus revenue, the analyst said. 

Nomura expects Mongodb's total revenue growth to accelerate from an estimated 50 percent in 2019 to 60-percent-plus in 2020, with the sell-side firm estimating subscription revenue at $371 million, or about 30 percent above consensus.

The new price target for the shares implies 10 times the estimated subscription revenue for 2020, Eberle said. 

" ... With intense competition from hundreds of smaller players as well as deep-pocketed incumbents like MSFT,, Inc. (NASDAQ: AMZN) and IBM (NYSE: IBM), we believe the battle will be long and hard-fought, and it's difficult to predict who will come out on top." 

The Price Action

Mongodb shares were down more than 4 percent at $75.69 at the time of publication Tuesday. 

Related Links:

Oracle Shares Look Inexpensive, Barclays Says After Q1 Earnings Beat

Best Sector ETFs For October: 3 Stocks Really Matter

Latest Ratings for MDB

Oct 2018OppenheimerInitiates Coverage OnOutperform
Oct 2018DA DavidsonInitiates Coverage OnNeutral
Oct 2018NomuraDowngradesNeutralReduce

View More Analyst Ratings for MDB
View the Latest Analyst Ratings

Posted-In: Christopher Eberle Nomura InstinetAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (AMZN + IBM)

View Comments and Join the Discussion!

Latest Ratings

CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Outlook Remains Solid For Consumer Cyclical ETFs

Fannie And Freddie Investors Find A Silver Lining Amid Claim Dismissals