6 MongoDB Analysts React To Q3 Beat And Raise, As Stock Spikes 20% On Earnings Report

Zinger Key Points
  • Beat and raise quarter, but usage trends are volatile, one analyst said.
  • Guidance does not reflect third-quarter’s multi-year EA strength repeating, another analyst stated.

Shares of MongoDB Inc MDB jumped in after-hours trading on Tuesday, after the company reported strong third-quarter results and issued upbeat guidance.

Morgan Stanley On MongoDB

Analyst Sanjit Singh maintained an Equal-Weight rating, while raising the price target from $215 to $230.

“A solid beat and raise is reassuring particularly as it reflects a QoQ improvement in underlying consumption patterns despite the tougher macro,” Singh said in a note. “While we come away encouraged, we note usage trends have been volatile and look for sustained improvement before getting back on board,” he added.

Piper Sandler On MongoDB

Analyst Brent Bracelin reiterated an Overweight rating and price target of $270.

“The surprising and unexpected 14% sequential rebound in Enterprise Advanced (EA) was aided by a shift in multi-year licensing deals,” Bracelin said. “This contributed to a $29M top-line beat that also helped swing non-GAAP bottom-line results back to profitability,” he added.

“MDB is evolving into a preferred enterprise standard for modern application development, which has contributed to healthy EA adoption,” the analyst further wrote.

Needham On MongoDB

Analyst Mike Cikos reaffirmed a Buy rating, while reducing the price target from $330 to $225.

“Management's tone also sounded better on the earnings call - reflecting improvements to Atlas Consumption trends and the company's Beat & Raise quarter,” Cikos mentioned.

“We think management has taken a thoughtful approach to its 4QF23 guide - assuming 3Q's seasonal Consumption eases and multi-year EA strength doesn't repeat,” he added.

Check out other analyst stock ratings.

RBC Capital Markets On MongoDB

Analyst Rishi Jaluria maintained an Outperform rating and price target of $235.

“Revenue beat consensus by 9.3%, larger than usual (vs. 6.8% last quarter and 8.3% 4-quarter avg.) with Atlas and Enterprise Advanced both $14M ahead of consensus,” Jaluria wrote in a note.

“Management sounded overall more positive on Atlas consumption trends (rebounded following what management now believes was a seasonal summer slowdown compounded by macro), as reflected in the notable raise to FY23 guidance,” he added.

JMP Securities On MongoDB

Analyst Patrick Walravens upgraded the rating from Market Perform to Market Outperform, while keeping the price target unchanged at $215.

The company saw a rebound in Atlas consumption, “particularly in areas that were below expectations in Q2,” Walravens said in the upgrade note.

MongoDB targets a large TAM, estimated at $85 billion in 2022, “with a superior operational database product” and is "led well by its CEO and CFO," the analyst added. The company has finally “turned the corner on profitability, generating $19.6M in non-GAAP operating income this quarter, guiding to non-GAAP operating margin of 2.5% for the full year,” he added.

Truist Securities On MongoDB

Analyst Miller Jump reaffirmed a Buy rating and price target of $300.

“MongoDB bounced back against the headwinds that they had called out in the last two quarters with a strong beat-and-raise in their 3Q23,” Jump said. “The company saw improvement in the pockets of weakness that they had noted on prior calls but came up short of a full rebound to normal consumption patterns,” he added.

MDB Price Action: Shares of MongoDB had risen by 21.89% to $175.82 at the time of publication Wednesday.

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Posted In: Analyst ColorEarningsNewsUpgradesPrice TargetReiterationAnalyst RatingsMoversTrading IdeasBrent BracelinJMP SecuritiesMike CikosMiller JumpMorgan StanleyNeedhamPatrick WalravensPiper SandlerRBC Capital MarketsRishi JaluriaSanjit SinghTruist Securities
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