Morgan Stanley raises Couchbase stock price target to $19 from $18

Published 04/06/2025, 11:08
Morgan Stanley raises Couchbase stock price target to $19 from $18

On Wednesday, Morgan Stanley (NYSE:MS) analysts increased the price target for Couchbase Inc (NASDAQ: BASE) stock to $19 from $18, while maintaining an Equalweight rating. Currently trading at $18.56, the stock sits within analysts’ target range of $16 to $26, according to InvestingPro data. This adjustment follows the company’s recent performance, where its annual recurring revenue (ARR) grew by 20% in constant currency, surpassing expectations.

The analysts noted that Couchbase’s net new annual recurring revenue (NNARR) growth accelerated to over 300% on a reported basis. Despite this, revenue outperformed only slightly due to migration challenges.

Couchbase’s fiscal year 2026 ARR outlook has been raised to a year-over-year growth of more than 18%. The company’s Capella growth has also shown acceleration, contributing positively to this outlook.

Product innovation remains a key focus for Couchbase, which is reflected in the analysts’ more positive stance on the company’s future performance.

In other recent news, Couchbase Inc. reported its financial results for the second quarter of 2025, revealing earnings per share (EPS) of -0.33, which missed the forecast of -0.08. However, the company’s revenue reached $56.5 million, surpassing the projected $55.59 million. Couchbase’s Total (EPA:TTEF) Annual Recurring Revenue (ARR) saw a significant increase, reaching $252.1 million, marking a 21% growth year-over-year. The company maintained its full-year revenue guidance between $228.3 million and $232.3 million, indicating a 10% growth. Analysts from RBC Capital Markets and Morgan Stanley have noted Couchbase’s resilience in the market, especially given the strong performance in large strategic accounts. The company’s Capella platform, which experienced an 84% year-over-year ARR growth, continues to be a key driver in Couchbase’s strategy. Additionally, Couchbase aims to achieve positive operating income by fiscal 2027, focusing on the adoption of its Capella platform and AI capabilities. These developments highlight Couchbase’s ongoing efforts to strengthen its position in the competitive database market.

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