Truist initiates coverage on MongoDB, Confluent, HashiCorp, JFrog with buy ratings

Sep. 30, 2022 8:32 AM ETMongoDB, Inc. (MDB), CFLT, HCP, FROGBy: Chris Ciaccia, SA News Editor1 Comment

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Investment firm Truist initiated coverage on cloud computing companies MongoDB (NASDAQ:MDB), Confluent (NASDAQ:CFLT), HashiCorp (NASDAQ:HCP) and JFrog (NASDAQ:FROG) on Friday, giving all four buy ratings for different reasons.

MongoDB: Jump gave a buy rating and a $300 price target to MongoDB (MDB), pointing out the company is "at the crossroads of the data revolution," as it have significant prospects in both applications and data.

"Given the significant growth in both applications and data that we stand on the cusp of through the remainder of the decade, we believe that the market expectations for MongoDB are underestimating both the strength and durability of their revenue growth potential," Jump wrote.

The analyst added that once the company reaches breakeven profitability, additional investors may come in and provide stability for the stock.

Confluent: Analyst Miller Jump started coverage on Confluent (CFLT) with a buy rating and $35 price target, noting the company is a "leader" in data-in-motion and has positioned themselves in the enterprise tech stack as a piece of growing importance.

"As data volumes grow, we see Confluent as positioned to benefit via above market-growth rates and operating leverage," Jump wrote in a note to clients.

He added that he believes Wall Street likely underestimates the durability of tailwinds Confluent (CFLT) has and its technological advantage.

HashiCorp: Jump started coverage on HashiCorp (HCP) with a buy and $40 price target, noting the company has "developed a foothold" inside the core cloud IT stack and its familiarity with the developer community via open source offerings should help them.

"We believe that the cloud transition will support an avenue for durable growth into the future and that the business model will see leverage on the bottom line as the company matures, driving results that are ahead of current expectations," Jump penned.

JFrog: Jump also gave a buy rating to JFrog (FROG), along with a $30 price target, noting it is the leader in binary management and has demonstrated a "robust value proposition" at the core of software deployment.

"In our view, the company has built out a compelling suite of products and will benefit from upsell opportunities for years to come," Jump wrote, adding the company's "balanced approach to growth and profitability" is likely to be viewed favorably, given the current climate of the market.

Earlier this month, investment firm Monness, Crespi, Hardt stayed cautious on MongoDB (MDB), despite the company reporting better-than-expected results and guidance.

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