KeyBanc Initiates a Buy Rating on MongoDB Inc

KeyBanc analyst Brent Bracelin initiated coverage with a Buy rating on MongoDB Inc (NASDAQ: MDB) yesterday and set a price target of $50. The company’s shares closed on Friday at $43.21, close to its 52-week high of $46.26.

Bracelin said:

“We see a greenfield opportunity for a new class of database to flourish as cloud spending could triple to $314B in 2022 from $97B in 2017. We are initiating coverage of MDB at Overweight and estimate revenue could quadruple to $705M within five years based on: (1) exponential growth in cloud-native applications that require a new class of database, (2) a $45B replacement opportunity within traditional relational databases, (3) high-quality leadership, and (4) differentiated technology with a patented, document-oriented database. New class of database to flourish on trillion-dollar IT transformation. The shift to cloud and digital is transforming a trillion-dollar enterprise IT landscape; we estimate that public cloud spending at the 60 largest vendors can triple to $314B by CY22.”

According to TipRanks.com, Bracelin is a top 100 analyst with an average return of 20.7% and a 75.3% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Microsoft Corp, and Salesforce.com.

MongoDB Inc has an analyst consensus of Strong Buy, with a price target consensus of $47.20.

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The company has a one-year high of $46.26 and a one-year low of $24.62. Currently, MongoDB Inc has an average volume of 754.3K.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MDB in relation to earlier this year.

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MongoDB, Inc. engages in the development and provision of a general purpose database platform. Its products include MongoDB Enterprise Advanced, MongoDB Professional, Development Support, Ops and Cloud Manager. The company was founded by Eliot Horowitz, Dwight A. Merriman, Kevin P. Ryan and Geir Magnusson Jr. in 2007 and is headquartered in New York, NY.