Morgan Stanley thinks it’s time to get back on board the MongoDB train, saying it sees a “pivot to profitability” for the company. Analyst Sanjit K Singh upgraded the cloud database stock to overweight from equal-weight. He also increased his price target to $270 per share from $230 per share, implying upside of 27.6% from Tuesday’s closing price. The firm moved to the sidelines on the company in November due to macro uncertainty, while noting at the time that it was willing to get bullish on the stock in the future due to its positive view on MongoDB’s competitive positioning and growth forecasts. Morgan Stanley now believes that many of its prior concerns have been addressed by the company and is now “getting back on board a secular beneficiary.” MDB YTD mountain MDB in 2023 “We see MongoDB continuing to be a long-term beneficiary from strong growth in net-new applications particularly as advancements in AI/large language model accelerate code development fueling growth in new applications and consequently database adoption,” Singh said. The analyst also cited cloud migrations driving growth for the company, in addition to “a significant consolidation [as] a[n] opportunity ahead as customers look to standardize their development efforts with fewer vendors during the current economic downturn driving ongoing share gains.” Singh thinks that much of MongoDB’s headwinds from cloud digestion should be behind it by the end of the current fiscal year. To be sure, the analyst noted that the company’s cloud optimization efforts could continue longer than currently anticipated, which would be a headwind to revenue growth projections. The stock was up more than 3% in the premarket Wednesday. MongoDB shares have gained 7.4% in 2023, on par with the S & P 500. However, shares have lost almost half of their value over the past 12 months. —CNBC’s Michael Bloom contributed to this report.