Citi has reaffirmed its buy rating for MongoDB (MDB) and raised its price target from $255 to $275. This comes as the company reported strong earnings for the first quarter of 2021 and a promising outlook for the next five years.
MongoDB, a leading cloud database platform, has seen a surge in demand for its services as more companies shift to remote work and digital operations. The company’s first quarter revenue increased by 39% year-over-year, beating analysts’ expectations. Citi expects this growth to continue as the company expands its customer base and introduces new features.
But what’s really catching investors’ attention is Citi’s forecast for 2026. The firm predicts that MongoDB’s revenue will reach $10 billion by then, driven by its increasing market share and potential for international expansion. This would represent a nearly 10-fold increase from its current revenue of $1.2 billion. With such strong growth potential, it’s no wonder that Citi is bullish on MDB’s future.
So what does this mean for retail investors? MongoDB’s stock has already seen a significant jump following the release of its first quarter earnings. And with Citi’s reaffirmed buy rating and price target increase, there is even more reason to be optimistic about the company’s future. Of course, as with any investment, there are always risks to consider. But with a strong track record and a promising outlook, MDB may be worth considering for those looking to add a growth stock to their portfolio.