Goldman downgrades Couchbase to Sell on competition, valuation

Goldman Sachs downgraded Couchbase to Sell from Neutral with a price target of $18, down from $30. The analyst sees an increasingly competitive landscape “with a seemingly elevated valuation” for Couchbase. Operating within a space that has seen success largely centered around the hyperscalers and MongoDB (MDB), it will be difficult for Couchbase to gain meaningful traction against these “well-resourced and highly recognized players,” the analyst tells investors in a research note. The firm believes the company needs notable investments to increase general awareness and knowledge around Capella. The stock’s risk/reward “skews unfavorable given the aforementioned points coupled with weakening data points from off-cycle prints,” contends Goldman.