Piper Sandler Starts Couchbase Inc (BASE) at Overweight

Piper Sandler analyst Brent Bracelin initiates coverage on Couchbase Inc (NASDAQ: BASE) with a Overweight rating and a price target of $22.00.

The analyst comments: "The -44% sell-off in BASE shares from the March YTD highs appears overdone, in our view, for a small-cap database specialist now valued at 3.7x CY25E EV/S (vs. 5.3x median across small-cap software). We are initiating coverage at Overweight with a $22 PT based on a handful of upside levers including 1) potential ARR growth reacceleration next year on a mix shift to Capella, 2) improving operating efficiency that could swing FCF positive next year, 3) untapped share gain potential in a large $100B+ market, and 4) favorable risk-reward at 3.5x CY26E EV/S and 27x EV/FCF. We recommend small-cap growth investors revisit BASE after the 44% pullback and ahead of the Capella model transition. We see revenue, margin, and multiple expansion potential over 12-24 months."

For an analyst ratings summary and ratings history on Couchbase Inc click here. For more ratings news on Couchbase Inc click here.

Shares of Couchbase Inc closed at $17.91 yesterday.

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