Why MongoDB Stock Popped Today
Shares of MongoDB (NASDAQ: MDB) were moving higher Friday after the cloud software stock received a bullish analyst note from Truist. As of 1:43 p.m. ET, the stock was up 5.4%.
Truist analyst Miller Jump initiated coverage on MongoDB Friday morning with a buy rating and a price target of $300, implying an upside of more than 50% from the stock's closing price Thursday. Jump argued that the provider of NoSQL database software is at the crossroads of several converging database markets, and said Wall Street was underestimating its revenue growth potential over the next decade. He also believes the stock will attract a wider investor pool once the company reaches profitability.
Like many software-as-a-service (SaaS) stocks, MongoDB shares have fallen sharply this year as valuations in the sector have compressed due to rising interest rates, fears of a recession, and concerns about a lack of profitability among cloud companies.
Source Fool.com
