Cloud stock MongoDB calls itself the 'most popular database for modern apps.'
Oppenheimer's Ittai Kidron (Track Record & Ratings) highlights Mongo one of his top picks for 2019. The analyst, who is ranked No. 13 out of over 5,000 analysts tracked by TipRanks, reiterated his MDB buy rating on January 7. That's with a $90 price target for 22 percent upside potential.
Analysts have stuck to their bullish thesis after Amazon's AWS unveiled a new cloud database called DocumentDB that emulates API functionality similar to MongoDB.
While calling AWS' competitive move 'undoubtedly a negative development', Oppenheimer's Kidron says he has more questions that answers at this time. As a result, the analyst remains 'comfortable' with the MDB story.
Kidron reminds investors, "MongoDB has executed well in the face of such competition, illustrated by its committed user base, excellent brand, and strong growth."
Similarly, KeyBanc's Brent Bracelin (Track Record & Ratings) wrote on January 9, "We remain bullish on the prospects for MDB to sustain high growth." He sees ample room for MongoDB to compete and win its fair share within one of the largest TAMs within software.
Indeed, the database market represents one of the largest categories of software that could grow into a $63B TAM by 2020 vs. $44B in 2016. Plus multi-cloud and new functionalities only available in MDB's latest version release represent 'key differentiators' that help mitigate the potential threat of AWS's new offering.
What also stands out is that Mongo has scored only buy ratings from top analysts in the last three months. These top analysts see the stock spiking 28 percent from current levels.