MongoDB (MDB) is starting to "hit its next stride" as its artificial intelligence applications are poised to expand significantly in the coming years, Wedbush said Monday in a report.

The company is shifting its focus to upmarket opportunities across enterprise channels, improving its innovation and increasing market share, the report said.

MongoDB's Atlas platform is gaining momentum among new customers with the highest year-to-date customer count additions in the company's history, Wedbush said.

Atlas represents a $2 billion revenue business, and MongoDB has "barely scratched the surface" of its growth potential, the report said.

Wedbush boosted its price target on MongoDB to $400 from $300 and maintained its outperform rating. The firm also added MongoDB to its Best Ideas List.

MongoDB shares rose 2.3% in recent Monday trading.

Price: 337.69, Change: +7.59, Percent Change: +2.30