MongoDB is likely to see more upside as accelerating artificial intelligence adoption drives demand for data management systems, according to Bank of America. The bank reiterated its buy rating on the data services stock and raised its 12-month price target to $540 from $450, implying 23% upside from Wednesday's close. "MongoDB will win [a] meaningful share of future AI workloads," analyst Koji Ikeda wrote Thursday in a note to clients. "Our call is simple: own MDB now, view any … fear-driven weakness as an opportunity." Some investors are wary that alternative data management system PostgreSQL could steal market share from MongoDB, driving down the stock by more than 40% in the first quarter, Ikeda said. PostgreSQL is a free, open-source project maintained by PostgreSQL Global Development Group. MDB has rebounded 86% since March 31, according to FactSet data. MDB 1Y mountain Despite the first quarter setback, MDB has more than doubled in the past year But while those concerns may resurface, Ikeda said he is is confident that they remain largely overblown. "We think the market is too focused on the wrong thing: Postgres catching up in simple apps. That is true, but not the prize," the analyst wrote. "The prize is winning big, always changing AI apps that need memory, scale, and real time transactional data. MongoDB thrives here." MongoDB has several advantages over its rival, the analyst added. MongoDB is more adept at handling larger troves of data versus its rival, and its system is easier to use for builders, per Bank of America. The bank's call falls matches the consensus on Wall Street, where 35 of 43 analysts rate MongoDB buy or strong buy, LSEG data shows.