William Blair analyst Jason Ader has maintained their bullish stance on BASE stock, giving a Buy rating on February 24.
Jason Ader has given his Buy rating due to a combination of factors including Couchbase’s strong financial performance and promising future outlook. The company reported fourth-quarter ARR and revenue that exceeded expectations, alongside significant improvements in non-GAAP operating margin and EPS. Despite slightly conservative revenue guidance for the upcoming fiscal year, Couchbase’s management remains confident in their growth projections due to the ongoing momentum of their Capella product and increased migration activities.
Furthermore, the company’s full-year revenue and ARR growth rates were impressive, driven by a successful mix of Capella, solid renewals, and new customer acquisitions. Couchbase’s profitability also saw a notable improvement, with non-GAAP operating margin and EPS surpassing consensus estimates. The company’s strategic focus on enhancing its product portfolio and expanding its partner ecosystem further supports the positive outlook, making it a compelling investment opportunity according to Ader.
Ader covers the Technology sector, focusing on stocks such as CommVault Systems, Dropbox, and DigitalOcean Holdings. According to TipRanks, Ader has an average return of 4.7% and a 51.79% success rate on recommended stocks.
In another report released on February 24, Wells Fargo also maintained a Buy rating on the stock with a $23.00 price target.