MongoDB (MDB) is expected to deliver strong fiscal Q1 results as Atlas growth momentum remains robust and demand trends across both cloud and on-premise offerings point to upside potential, BofA Securities said in a note Tuesday.

The investment firm said Atlas growth rose 29% year over year in Q4 and added that recent beat trends imply Atlas revenue growth could reaccelerate to about 30% in fiscal Q1.

The firm also highlighted Enterprise Advanced, MongoDB's on-premise offering, as a source of growth upside. BofA analysts noted the company is investing more heavily in the product as more enterprise workloads are likely to shift toward hybrid models.

BofA said MongoDB's positioning in the AI-native ecosystem could help drive adoption as a foundational database for new AI applications.

The company is scheduled to report its fiscal Q1 results after markets close on May 28.

BofA reiterated its buy rating on the stock and raised its price objective to $375 from $350.

Shares of MongoDB were up 1.9% in Tuesday trading.

Price: 336.20, Change: +6.20, Percent Change: +1.88