MongoDB is starting to stand out from its peers in the eyes of its customers, and investors should reap the rewards, according to UBS. Analyst Karl Keirstead upgraded MongoDB to buy from neutral, saying in a note to clients on Thursday night that the company's customers are finding MongoDB's products increasingly more useful. "We conclude that the stock still doesn't fully reflect two key emerging positives: that MongoDB databases are increasingly being used for complex use cases requiring 'transactional consistency,' and that MongoDB's feature advantages relative to rivals may be widening," Keirstead wrote. The tech company appears to be gaining share against its peers, including some large and well-established names, according to UBS. "One of the legitimate bear cases around MongoDB is that it competes in a crowded market, including not just entrenched relational database incumbents Oracle, Microsoft and IBM but also a long list of 'next-gen' database providers. In this round of checks, it sounded like MongoDB was further separating itself from this pack," Keirstead wrote. Shares of MongoDB are down nearly 30% year to date, but have now risen for three straight sessions, including a 15.3% jump on Wednesday. UBS hiked its price target on MongoDB to $450 per share from $345. The new target is 20.8% above where the stock closed on Thursday. —CNBC's Michael Bloom contributed to this report.
MongoDB IPO at the Nasdaq October 19, 2017.
MongoDB is starting to stand out from its peers in the eyes of its customers, and investors should reap the rewards, according to UBS.