MongoDB named a ‘Top Pick’ in North American software at Morgan Stanley

Morgan Stanley named MongoDB (MDB) as a “Top Pick” in North American software, arguing that fading headwinds from optimizations, combined with lower rates ahead, leave the firm more constructive on secular growth stories with usage based models, such as MongoDB. The firm, which expects share to re-rate towards their historical five-year premium versus SMID cap peers, has an Overweight rating and $350 price target on MongoDB shares. Meanwhile, given the roughly 20% increase in Fortinet’s (FTNT) stock since November, the analyst is removing the stock as “Top Pick” within security, yet remains positive on the company’s upward revision potential.