Couchbase initiated with a Neutral at UBS

UBS initiated coverage of Couchbase with a Neutral rating and $31 price target. The firm likes Couchbase Capella’s potential to accelerate new logo growth and and support sustainable 20% annual recurring revenue growth over the coming years, but says Capella’s growth to date still appears to be primarily driven by existing installed base conversions. UBS says it didn’t pick up enough signs that Couchbase’s traction amongst developers is inflecting to make a more constructive call on the stock. It sees a balanced risk/reward from here.