BofA Securities has increased its price target on MongoDB to $500 from $480 and preserved a Buy recommendation on the database vendor. The new target implies roughly 34% upside versus the current share price of $374.02, a figure that outpaces the average analyst consensus upside of 11%.
The upgrade is tied to what BofA describes as an acceleration in Atlas revenue growth. Atlas grew 30% year-over-year in MongoDB's third fiscal quarter, up from 29% in the second quarter. That strength in Atlas - the company's cloud database offering - sits alongside broader company growth: MongoDB's overall revenue rose 20.93% over the trailing twelve months, and the company reports a five-year compound annual growth rate of 37%.
BofA highlighted the dual nature of MongoDB's go-to-market approach - combining top-down enterprise sales with bottom-up product-led adoption - and pointed to a widening product portfolio aimed at AI workloads and legacy application modernization as supportive drivers of future growth. The firm said its valuation increase is predicated on a 14.2x EV/CY26E revenue multiple, which represents a premium to infrastructure software peers trading at 5.6x. BofA justifies that premium by pointing to MongoDB's roughly 30% Atlas growth compared with peers' 11% growth rate.
Market metrics referenced in the analysis include a Price/Book ratio of 10.54x for MongoDB and a trading multiple the report described as an elevated 10.4x. On the balance sheet, MongoDB carries more cash than debt and shows a strong current ratio of 5.25, providing the company financial flexibility to fund product development and go-to-market initiatives.
Analyst sentiment around MongoDB has shifted higher in recent weeks. Thirty-three analysts have revised earnings estimates upward for the upcoming period, and consensus expectations now project MongoDB becoming profitable this fiscal year despite not having been profitable over the past twelve months. Several brokerages reiterated or maintained Buy ratings in the wake of the company's product announcements and Atlas momentum.
Product progress has been notable in the firm's recent public statements. At a user conference in San Francisco, MongoDB announced integrations of embedding and reranking models from Voyage AI into its database platform as part of an effort to build what it describes as a "unified data intelligence layer" for AI applications. The company also expanded its MongoDB for Startups program with new partnerships that include Fireworks AI and Temporal, aimed at supporting early-stage firms.
Those product and partnership moves generated positive analyst reactions. Stifel reiterated its Buy rating following the AI-related announcements. Truist Securities maintained a Buy rating and a $500 price target, expressing optimism about MongoDB's market direction. Goldman Sachs also retained a Buy view and set a $475 price target, noting Atlas growth acceleration from roughly 24% to 30% in recent quarters.
While the valuation premium over infrastructure peers is substantial, BofA points to faster Atlas growth and expanding AI capabilities as reasons the market-wide premium is warranted. The firm’s valuation framework and the analyst community’s upward earnings revisions suggest expectations that MongoDB's product-led and enterprise-led revenue engines will drive greater margin and profitability outcomes in the current fiscal year.