Loop Capital downgraded MongoDB (MDB) to a "Hold" rating from "Buy" and significantly reduced its price target to $190 from $350. The firm's revised outlook is based on the expectation that AI tailwinds for MongoDB are likely slower than previously anticipated.
This downgrade reflects concerns about the pace of AI adoption translating into revenue growth for the database software maker. The analyst's assessment suggests a more cautious near-term view on the company's growth prospects.
The substantial cut in the price target indicates a re-evaluation of MongoDB's valuation in light of these perceived slower AI benefits and potential competitive dynamics in the database market.
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