Goldman Sachs Reiterates Buy on MongoDB, $475 Target and High-20% Revenue Outlook
Goldman Sachs reiterated its Buy rating on MongoDB and set a $475 price target, noting the company's consumption-based Atlas model could drive fiscal 2027 revenue growth into the high 20% range. MongoDB shares have fallen about 18% year-to-date, underperforming the software sector's 22% decline.
1. Rating and Price Target
Goldman Sachs has reiterated a Buy rating on MongoDB, maintaining a $475 12-month price target based on combined EV/sales and EV/free cash flow valuation metrics. The firm highlights MongoDB’s positioning as an operational database provider integral to AI workloads.
2. Share Performance
MongoDB shares are down approximately 18% year-to-date, lagging the software sector’s 22% decline over the same period. This relative underperformance reflects broad software de-rating despite stable fundamentals.
3. Growth Outlook and AI Demand
Analysts cite growing demand for real-time, stateful data to support AI applications as a key driver, projecting Atlas revenue growth in the high 20% range for fiscal 2027. The consumption-based pricing model aligns with scaling AI workloads and underpins the bullish case.