2023-04-12 16:29:08 ET
MongoDB ( NASDAQ: MDB ) shares gained nearly 7% on Wednesday as investment firm Morgan Stanley upgraded the database software company on expectations that customers will continue to make faster transitions to the cloud.
Analyst Sanjit Singh raised his rating on MongoDB ( MDB ) shares to overweight from equal-weight and boosted the price target to $270 from $230, noting that a recent survey of U.S. and E.U. CIOs showed an active engagement in cloud optimization moves.
In addition, Singh wrote the survey found that companies that are either optimizing or will do so, expect to see an acceleration in 2024. These companies also have more applications currently running in the public cloud.
Singh added MongoDB ( MDB ) 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 ( MDB ) as one of the tech companies best prepared for earnings season .
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Why did MongoDB stock go up today? Morgan Stanley upgrade