MongoDB (MDB) is expected to sustain strong revenue momentum, driven by core database growth supported by its upmarket expansion and new sales incentives, as 2025-2026 projects scale into 2027, Morgan Stanley said in a Thursday note.

The brokerage expects MongoDB's Artificial intelligence-driven Application Modernization Program to begin contributing by late 2026, tapping into an estimated $18 billion market opportunity.

Morgan Stanley projects sustained Atlas growth above 20% and margin expansion to drive stronger revenue and profitability through 2027, positioning MongoDB for continued operational leverage, according to the report.

Analysts see application modernization as a major catalyst in MongoDB's evolution, supporting its transition into a new phase of durable and scalable profitable growth.

The firm maintained its overweight rating on the stock and raised its price target to $400 from $325.

Shares of the company were up 1.1% in recent trading.

Price: 355.38, Change: +5.10, Percent Change: +1.46