MongoDB (NASDAQ:MDB) saw its stock price rise after Morgan Stanley upgraded MongoDB to overweight from equal weight, citing the company’s leadership in cloud optimization initiatives. The firm raised its price target to $270, which suggests shares could gain 27.6% from Tuesday’s close.
Analyst Sanjit Singh raised his rating on Mongo to overweight from equal-weight and boosted the price target to $270, up from $230, noting that a recent survey of CIOs in both the U.S. and E.U. showed an active engagement in cloud optimization moves.
In addition, Singh noted that the survey found that companies that are either optimizing or will do so, expect to see an acceleration next year. They also have more applications already running in the public cloud.
Singh said MongoDB is likely to benefit from its spot in the database market and could see the stock trade higher as a result.
"[W]e see a path emerge for MDB shares to re-rate higher and trade back in-line with its historical premium to SMID cap peers, as cloud migration momentum, relational displacement, and potential AI development will drive more interest on the back of our view that optimization efforts are likely troughing in [first-half of 2023]," Singh wrote in an investor note.
Late last month, Wedbush Securities listed MongoDB as one of the tech companies best prepared for earnings season .
MDB shares skyrocketed $16.14, or 7.5%, to $227.66.
