MongoDB (MDB) Receives Scotiabank Upgrade Amid Expectations for Pullback

MongoDB, Inc. (NASDAQ:MDB) is one of the 11 best software stocks to invest in according to billionaires.

MongoDB (MDB) Receives Scotiabank Upgrade Amid Expectations for Pullback

Following the company’s earnings release, analysts at Scotiabank think that much of the overexcitement about the stock has settled, creating an attractive buying opportunity at the current reset level. Even in a worst-case scenario, the firm projects over 23% revenue upside in fiscal 2027.

Accordingly, analysts at Scotiabank upgraded MongoDB, Inc. (NASDAQ:MDB) from “Sector Perform” to “Outperform” and raised the price target from $275 to $310 on March 5, 2026.

In the fourth quarter, MongoDB, Inc. (NASDAQ:MDB) recorded a 29% revenue growth in its Atlas Business, which remains a key beneficiary of growing AI adoption. However, growth slightly slowed down compared to the 30% growth in the previous quarter.

Meanwhile, MongoDB, Inc. (NASDAQ:MDB) expects Q1 profit to come in below estimates, having already shown slower quarterly revenue growth for its cloud database product Atlas. Following this, on March 3, 2026, Reuters reported that the company’s shares fell 27% to a six-month low.

Analysts at UBS remain uncertain about the deceleration in the business growth, as management provided no explanation for the softer performance.

At the same time, analysts at Barclays commented, “Q4 was more mixed with a slightly lower Atlas beat level and below consensus FY27 guidance. Some of this could well be conservatism, but in this tape, investors don’t have a lot of patience.”

Analysts remain uncertain about the trajectory of Atlas amid industry-wide AI-related headwinds.

MongoDB, Inc. (NASDAQ:MDB) focuses on developing and providing a general-purpose database platform, while also offering professional consulting and training services. Its products include MongoDB Enterprise Advanced, MongoDB Atlas, and Community Server.

While we acknowledge the risk and potential of MDB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.