LightPath Technologies (NASDAQ: LPTH), MongoDB (NASDAQ: MDB), and Braze, Inc. (NASDAQ: BRZE) offer opportunities in Q4; however, not all opportunities look the same. In one case, a market is surging on its improving outlook but has overextended and is poised to pull back, creating a buying opportunity.
In others, improving sentiment is setting up rebound/reversal scenarios, which are likely to be accelerated by upcoming earnings releases. In all cases, the upside potential is significant for these tech stocks, and the downside is limited.
LightPath Technologies: A Buy-the-Dip Tech Stock, Poised to Fall
LightPath Technologies' stock price rocketed higher in early 2025 and is expected to continue advancing due to its favorable technical and business outlook. The company’s light-sensing, AI-enabled products are gaining demand through several vectors, including industrial, security, law enforcement, government, and defense, driving a forecast for hyper-growth and rapidly improving operational quality. The caveat is that the stock price surge reached a peak in early October, setting the market up for a retreat that will open a more attractive entry point.
Although LPTH’s stock price advance aligns with its outlook, the price action is front-running the analysts' sentiment trends, which provide a ceiling and targets for critical support. Their trends reveal coverage more than doubling to five in the last 12 months, sentiment firm at Moderate Buy, and the price target rising. The consensus price target, trend, and high-end are the critical details, with the high-end aligning with the early October price action and the consensus a support target roughly 20% below it.
MongoDB: A Stock Price Reversal Gaining Traction
MongoDB’s Q2 results revealed it is, indeed, well-positioned for the AI boom. The takeaway is that business is accelerating on the adoption and penetration of the Atlas platform, and upcoming results are likely to be strong. The improvement in outlook and potential for strength is also evident in the chart, which indicates a bottoming market poised to advance within a trading range, with the potential to increase by 45% over the next few quarters. Regarding the outlook for revenue and earnings, MDB is forecasted to sustain a high-teen CAGR for the next five to ten years and to widen its margin.
Analysts' sentiment trends are also driving this market. MarketBeat reveals robust coverage, with 39 analysts covering this stock, and coverage is rising, up 50% in the last year. The sentiment is firm at Moderate Buy, and the price target, while flat year-over-year, is up 20% in the previous quarter, indicating the early-2025 price target slump is over and higher prices are now expected. The high end of the range places MDB stock at $430, in the high end of the trading range and near the critical resistance target.
Braze: Bottoming in Q4, the Analysts Say So
Braze’s price action has suffered for the last year or so due to growth concerns and diminishing analyst sentiment; however, that trend is over. The FQ2 report revealed strength driven by AI, accelerating growth, improved profitability, and guidance, resulting in a shift in analysts' sentiment. Analysts have begun to raise their price targets after quarters of reductions, affirming the consensus and forecast for a 60% upside that could be reached within the next four quarters.
The technical action is tepid but aligns with the bottoming process. The market retreated to critical, long-term support near record lows in August and has since rebounded. The rebound is significant, but it is a poor signal on its own; the strength is evident in the rising trading volume, which has been increasing for months and reached record levels at the end of September. Volume is linked to institutional activity, which is robust, netting shares at a pace of 2-to-1, and expected to remain strong with shares near historical lows.
