Couchbase Is Positioned For 'Healthy' Revenue Growth As Companies Shift To The Cloud, Says Bullish Analyst

Couchbase Inc (NASDAQ:BASE) is poised for "heathy" growth in ARR (annual recurring revenue) over the next few years, as companies ramp up their shift to the Cloud, according to Rosenblatt Securities.

The Couchbase Analyst: Analyst Blair Abernethy initiated coverage with a Buy rating and price target of $20.

The Couchbase Thesis: The company's cloud-based Capella database platform offers a "uniquely strong and cost-effective value proposition for workloads that are mission-critical workloads or optimized for the edge," Abernethy said in the initiation note.

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The analyst stated that the platform is being widely adopted by new and existing customers, and emerging AI applications are being added to the mix.

Capella's ARR has grown from 11% of total ARR last year to 16% currently and has helped to increase new customer adds from 74 last year to 159 in fiscal 2025, Abernethy noted.

"We expect Couchbase to maintain its solid balance sheet and reach approximate cash flow breakeven in FY26 (ending January 2026) and be positive next year, which should help to drive a re-rating of the stock from its current low multiple levels," Abernethy wrote.

BASE Price Action: Shares of Couchbase had risen by 4.65% to $14.06 at the time of publication on Wednesday.

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