08:57 AM EDT, 05/31/2024 (MT Newswires) -- MongoDB's ( MDB ) share drop of around 24% in recent Friday premarket activity following its reported fiscal Q1 decline in earnings creates an opportunity for the company as a reset in investor expectations while it faces macroeconomic headwinds, Truist said Friday in a note.

"We continue to see a long runway for growth for the company, but we believe that the share reset after hours reflects the company going up against an expectations treadmill that was running at top speed," analysts at Truist wrote.

MongoDB ( MDB ) posted fiscal Q1 non-GAAP diluted EPS of $0.51, down from $0.56 last year, on revenue of $450.6 million, up from $368.3 million a year earlier. Analysts surveyed by Capital IQ expected $0.37 on $439.9 million.

The company also cut its fiscal 2025 outlook to a non-GAAP EPS of $2.15 to $2.30 on revenue of $1.88 billion to $1.9 billion. EPS guidance was previously $2.27 to $2.49 on revenue of $1.9 billion and $1.93 billion.

Truist said the company's current share value following the results "represents an average price for a company with above-average prospects."

MongoDB ( MDB ) will have to continue tweaking its sales motion amid macroeconomic headwinds, as well as after it acknowledged execution missteps in the quarter, Truist said. However, Truist added that it believes the company is "positioned to capitalize on a long runway for future growth as the largest companies in the world shift to the cloud."

Truist lowered its price target for MongoDB ( MDB ) to $300 from $475.

Price: 236.70, Change: -73.30, Percent Change: -23.65