The firm described the company as a “premium asset at a premium valuation.”

However, despite the Neutral rating, analysts told investors that the firm is adding the stock to its Best-of-Breed Bison initiative.

“MDB operates in a very attractive $80B+ database market w/ secular tailwinds fueling NoSQL market growth of ~30%/yr & MDB is the clear NoSQL market leader w/ a fully-featured NoSQL database that is best suited for the overwhelming majority of modern application,” the analysts wrote.

“That said, we see shares unlikely to outperform over the near-to-intermediate term given the already premium valuation, though, as we believe cons. FY25 & FY26 ests. leave more room for downside than upside.”