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Investing.com - Oppenheimer has downgraded Couchbase Inc (NASDAQ:BASE) from Outperform to Perform, removing its previous $20 price target following the company’s acquisition announcement. The company, currently valued at $1.33 billion, has seen its stock surge about 56% year-to-date, significantly outperforming the broader market.
The rating change comes after Couchbase announced in June its agreement to be acquired by Haveli Investment for $24.50 per share, representing limited upside potential from the current trading price. According to InvestingPro analysis, the stock appears overvalued at current levels, despite maintaining impressive gross profit margins of nearly 88%.
Oppenheimer noted that at approximately $24.26 per share, Couchbase stock reflects "negligible upside versus implied transaction price" established in the acquisition agreement.
The investment firm stated it anticipates the acquisition deal will proceed as planned without complications.
Oppenheimer also indicated it does not foresee additional bidders emerging to compete with Haveli Investment’s offer for the database software company.
In other recent news, Couchbase Inc. announced an agreement to be acquired by Haveli Investments in an all-cash transaction valued at approximately $1.5 billion. This acquisition will provide Couchbase stockholders with $24.50 per share, marking a 67% premium to a previous closing stock price. Following the announcement, multiple analyst firms, including Baird, William Blair, and Rosenblatt Securities, downgraded Couchbase’s stock rating. Baird adjusted its rating from Outperform to Neutral, raising the price target to $25.00. William Blair downgraded the stock from Outperform to Market Perform, while Rosenblatt Securities shifted its rating from Buy to Neutral, raising its price target to $24.50. Additionally, UBS analysts raised Couchbase’s stock price target to $20, maintaining a Neutral rating after the company reported mixed first-quarter results. Couchbase’s new annual recurring revenue (ARR) reached $14.2 million, surpassing previous guidance, though overall revenue growth exceeded expectations by just $0.6 million. License revenue also performed better than anticipated, contributing an additional $2.5 million quarter-over-quarter.
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