Analyst Sees Huge Upside for MongoDB Stock

Morgan Stanley upgraded software concern MongoDB Inc (NASDAQ:MDB) stock to "overweight" from "equal weight" and hiked its price target to $270 -- a 27.6% premium to last night's close.

In its bull note, the analyst said it sees a "pivot to profitability," saying its macro concerns have been addressed and citing the company's market leadership. In addition, Morgan Stanley said MongoDB could benefit from new artificial intelligence (AI) advancements and cloud migration.

MongoMD stock is surging this morning, last seen up 9.9% to trade at $232.50. The equity's most recent pullback was saved by support from the 120-day moving average, and today's pop could put MDB back above its 200-day trendline. Year-to-date, the security sports a more than 14% lead. 

Options volume is picking up this morning, and running at five times the intraday average amount. New positions are opening at the top five contracts, led by the April 235 call.

Those looking to speculate with options can do so for a bargain at the moment. This is per MongoDB stock's Schaeffer's Volatility Index (SVI) of 61%, which ranks in the low 9th percentile of annual readings. Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 72 out of 100, meaning MDB stock has exceeded option traders' volatility expectations during the past year -- a good thing for options buyers.