{"id":541540,"date":"2026-03-24T03:04:20","date_gmt":"2026-03-24T03:04:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/541540\/"},"modified":"2026-03-24T03:04:20","modified_gmt":"2026-03-24T03:04:20","slug":"ai-tailwinds-will-drive-gains-for-this-software-stock-after-a-decline-to-start-2026-mizuho-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/541540\/","title":{"rendered":"AI tailwinds will drive gains for this software stock after a decline to start 2026, Mizuho says"},"content":{"rendered":"<p>MongoDB is poised for a rally as its growth profile improves and it continues to embrace artificial intelligence to keep its developer data platform&#8217;s operations lean, according to Mizuho. The bank upgraded MongoDB to outperform from neutral. It also raised the stock&#8217;s price target to $325 from $290, implying 24% upside from Friday&#8217;s close. &#8220;MongoDB&#8217;s growth profile has inflected meaningfully \u2026 [and] we see AI as a structural tailwind,&#8221; analyst Siti Panigrahi\u00a0said Sunday in a note to clients. MDB YTD mountain MDB in 2026 The company is on track to increase its customer base by 60% year on year in fiscal 2026, while revenue from existing customers improves, according to Panigrahi. At the same time, MongoDB&#8217;s headcount is growing just 1% against a 23% increase in revenue, signaling &#8220;efficient, durable growth,&#8221; he noted. The company is &#8220;unlike SaaS peers facing AI disruption risk [because] MongoDB operates at the infrastructure layer where AI is net additive,&#8221; Panigrahi wrote. &#8220;Vibe coding is accelerating applications creation, each requiring a data layer, while AI workloads are more database-intensive, driving higher activity per application.&#8221; CEO CJ Desai, who took the reins late last year, is also expected to leverage his Fortune 500 relationships to accelerate large-deal momentum at the firm, per Mizuho. &#8220;Our bottom-up analysis suggests these drivers can support upside FY27 revenue of $3.07B (25% growth) vs. Street at $2.90B (18%), with upside flowing through to margins given the lean cost structure,&#8221; Mizuho analysts wrote. The bank&#8217;s call falls in line with consensus on the Street. About three-quarters of the 42 analysts covering the stock have a buy or strong buy rating on MongoDB, according to LSEG data. MongoDB has fallen 38% in 2026. A chunk of that decline came this month, with shares dropping 22% on March 3 on the back of lighter-than-expected guidance for the first quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"MongoDB is poised for a rally as its growth profile improves and it continues to embrace artificial intelligence&hellip;\n","protected":false},"author":2,"featured_media":541541,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,122,220988,113,213758,221439,72230,114,74],"class_list":["post-541540","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business-news","tag-first-trust-cloud-computing-etf","tag-investment-strategy","tag-ishares-expanded-tech-software-sector-etf","tag-mizuho-financial-group-inc","tag-mongodb-inc","tag-stock-markets","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/541540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=541540"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/541540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/541541"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=541540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=541540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=541540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}