Analyst Mike Cikos from Needham maintained a Buy rating on Couchbase (BASE – Research Report) and keeping the price target at $22.00.
Mike Cikos has given his Buy rating due to a combination of factors that highlight Couchbase’s recent performance and future potential. The company has achieved a record-breaking quarter for Net New Annual Recurring Revenue (ARR), driven by the fiscal year 2025 renewals cycle and the completion of several significant strategic deals.
Capella, Couchbase’s Database-as-a-Service (DBaaS) offering, plays a crucial role in this positive outlook. It has shown substantial growth, accounting for 16.2% of the total ARR by the end of fiscal year 2025, with expectations to increase to around 21%-22% in fiscal year 2026. This growth trajectory suggests that Capella will surpass Enterprise Net New ARR. Although there might be a delay in reaching the full-year Free Cash Flow target from fiscal year 2026 to 2027, the company is committed to demonstrating ongoing progress, which supports the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $22.00 price target.