Two tech companies—a database software company and a cybersecurity firm—are now on a stock-picking “best ideas” list.
Analysts at Wedbush on Monday added MongoDB (MDB) and Palo Alto Networks (PANW), the software and cybersecurity outfits, respectively, to their 14-company list, citing their potential to benefit from booming artificial intelligence demand.
The analysts raised their target for MongoDB’s stock to $400 from $300, setting one of the highest targets among analysts surveyed by Visible Alpha and well above Monday’s close near $334. “We believe MDB has barely scratched the surface of its growth potential given the benefits from AI are still in the early innings,” Wedbush said.
They maintained their $225 target for Palo Alto Networks, just a bit above the mean of analyst tracked by Visible Alpha near $217 and Monday’s close around $201. They called a recent drawdown in the stock a “golden buying opportunity.”
What Else Is on the Wedbush List?
Wedbush said Palo Alto Networks is likely to get a boost from broader demand trends for cybersecurity as AI-driven threats proliferate, and could be poised to grow market share with its attempts to become a “one-stop shop” for clients, and recent acquisition of password management provider CyberArk.
The company, the analysts wrote, “will be a core benefit of this next wave of tech spending and the CyberArk deal was a home run transaction that the Street is still not fully digesting in our view,” Wedbush said.
Wedbush’s list features 12 other stocks: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Tesla (TSLA), Western Digital (WDC), Check Point Software (CHKP), IBM (IBM), Imax (IMAX), Pegasystems (PEGA), Roblox (RBLX), Silicon Motion Technology (SIMO), and argenxSE (ARGX).
The list, Wedbush said, rose more than 14% through the end of August, outpacing the S&P 500’s roughly 11% gain. Shares of MongoDB added close to 36% over the same period, while Palo Alto Networks gained about 5%.