Couchbase price target lowered to $23 from $25 at Oppenheimer

Oppenheimer lowered the firm’s price target on Couchbase to $23 from $25 and keeps an Outperform rating on the shares. The firm notes Couchbase delivered a mixed Q2 with in-line revenue/EPS but soft Q3/FY25 ARR guidance. The company saw an uptick in churn/downsells in Q2, impacting NNARR. Additionally, given a Q4 weighted renewal pipeline with larger than normal contribution from ramped deals, management guided below Q3 ARR estimates. While Oppenheimer expects the soft guide to weigh on shares near term, it is encouraged by the increasing Capella adoption, strong new customer additions, and success with large strategic accounts. The firm believes the company is on the right track, and as its revenue base continues to scale, expect outsized one-time events to have a smaller impact on its results.