MongoDB 'the best way to play AI' - Wells Fargo
MongoDB (NASDAQ:MDB) was initiated with an Overweight rating and a $500 per share price target by Wells Fargo on Thursday.
Analysts declared in their note to investors that the company is «the best way to play AI.»
«We see MongoDB as the best AI play in software infrastructure given its ever-expanding list of new workloads,» explained the analysts. «We believe AI applications are another new workload that can drive the growth of MongoDB. However, we believe these workloads are more impactful to growth than other workloads, and MongoDB is the best-positioned vendor, in our view, to capture these workloads.»
On the bank's investment thesis, the analysts said the key to long-term growth is MongoDB's ability to win new workloads, as «every incremental workload has an exponential impact on ARR.»
In addition, they believe large customers have an outsized impact on revenue growth, adding that «MongoDB is still massively underpenetrated in the G2000.» Wells Fargo also believes MongoDB has «significant room for Operating Margin expansion.»
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