MongoDB (MDB) delivered a largely in-line fiscal Q2 results, with Atlas database growth stable and artificial intelligence upside still in early-stage, UBS said in a note Tuesday.

"Fundamentally, MongoDB is posting stable and attractive high-20% Atlas growth but just isn't seeing a material AI pull-through yet," the report said.

The report said AI pull-through is still not material for the company, unlike what is becoming more visible at peers such as Snowflake (SNOW) and Databricks.

Some AI-natives have begun using MongoDB as a memory layer, the note said, adding that the company will make some product announcements at its Sept. 29 event.

UBS cut its price target to $410 from $460 while keeping its neutral rating.

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