MongoDB's Expanded Monetizable Opportunities: Atlas Stream Processing and Vector Search - Analyst's View

Truist Securities analyst Miller Jump reiterated a Buy rating on the shares of MongoDB, Inc. MDB, raising the price target to $420.00 from $365.

The analyst views the rollout of Atlas Stream Processing and Vector Search as two areas that will expand the monetizable opportunity for the company mid-term.

MongoDB rolled out the Atlas Stream Processing at their NYC local user conference, which will boost the company's TAM into more real-time use cases. 

Jump also believes MongoDB's solid foothold in the AI ecosystem will support "durable growth" through the remainder of the decade.

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The analyst applauds MongoDB's sales productivity, which continues to increase per rep as the sales force matures while also gaining leverage from technical and sales partnerships.

Jump considers MDB's margin performance to exceed current Street expectations, serving as a "tailwind for shares."

On their most recent earnings call, with the guidance bar reset in the 2H23, MongoDB continued its momentum into FY24 with an impressive beat and raise on both the top and bottom lines driven by consumption levels that exceeded their outlook, the analyst added.

Price Action: MDB shares are trading higher by 1.54% to $394.33 on the last check Friday.