Selected stock price target news of the day - December 5th, 2024

By: Matthew Otto

Couchbase Beats Q3 Expectations but Faces Challenges with Lower Q4 Guidance and Cash Flow Pressures

Couchbase reported third-quarter fiscal 2025 financial results, posting an EPS of ($0.05), outperforming the consensus estimate of ($0.08) by $0.03. Revenue for the quarter totaled $51.6 million, surpassing the consensus estimate of $50.77 million and reflecting a 13% year-over-year increase.

Subscription revenue contributed $49.3 million, up 12% from the prior year. Annual recurring revenue (ARR) climbed 17% year-over-year to $220.3 million, or 16% on a constant currency basis. Remaining performance obligations (RPO) grew 29% year-over-year to $211.3 million.

Looking forward, Couchbase anticipates Q4 revenue of $52.7 to $53.5 million, below the consensus estimate of $54 million. For the full fiscal year, revenue guidance remains at $207.2 to $208.0 million, with ARR expected to range from $236.5 to $239.5 million. Non-GAAP operating loss is projected at $5.7 to $4.7 million for Q4 and $20.0 to $19.0 million for the fiscal year.

Operationally, Couchbase highlighted milestones, including Capella’s growth to 15.1% of ARR and one-third of its customer base, the launch of Capella AI Services, and advancements in mobile and real-time analytics. However, Couchbase faces challenges, with negative free cash flow increasing to $17.5 million in Q3 from $13.8 million a year ago.

Analyst Ratings Reflect Mixed Sentiment Amid Guidance Concerns

RBC Capital analyst Matthew Hedberg reiterated an Outperform rating and a $25 price target.
DA Davidson analyst Rudy Kessinger maintained a Buy rating and the price target at $25.
Guggenheim analyst Howard Ma also reiterated a Buy rating and set price target to $30.
Stifel analyst Brad Reback maintained a Buy rating, though raised the price target from $20 to $22.
Morgan Stanley analyst Sanjit Singh held an Equal-Weight rating but adjusted the price target downward from $27 to $25.
Baird analyst Rob Oliver reiterated an Outperform rating while lowering the price target from $27 to $25.
Needham analyst Mike Cikos kept with a Buy rating and a $22 price target.
Piper Sandler analyst Brent Bracelin maintained an Overweight rating and a $21 price target.

Which Analyst has the best track record to show on BASE?

Analyst Sanjit Singh (MORGAN STANLEY) currently has the highest performing score on BASE with 10/12 (83.33%) price target fulfillment ratio. His price targets carry an average of $10.9 (67.70%) potential upside. Couchbase stock price reaches these price targets on average within 72 days.

Pure Storage Exceeds Q3 FY2025 Estimates, Provides Strong Guidance

Pure Storage delivered its third-quarter fiscal year 2025 results reporting earnings per share (EPS) of $0.50, outperforming analyst estimates of $0.41 by $0.09. Revenue for the quarter was $831.1 million, surpassing the consensus estimate of $815 million and marking a 9% year-over-year increase.

Subscription services revenue grew by 22% to $376.4 million, while subscription annual recurring revenue (ARR) also rose 22% to $1.6 billion. Remaining performance obligations (RPO) reached $2.4 billion, a 16% increase year-over-year.

Pure Storage posted a GAAP gross margin of 70.1% and a non-GAAP gross margin of 71.9%. Operating income was $59.7 million on a GAAP basis and $167.3 million non-GAAP, yielding operating margins of 7.2% and 20.1%, respectively. Pure Storage also generated $97.0 million in operating cash flow and $35.2 million in free cash flow, ending the quarter with $1.6 billion in cash, cash equivalents, and marketable securities.

Looking ahead, Pure Storage provided optimistic guidance, projecting Q4 FY2025 revenue of $867 million, above the consensus estimate of $856.9 million, representing a 9.7% year-over-year growth rate. For FY2025, Pure Storage expects revenue to reach $3.15 billion, exceeding the consensus estimate of $3.13 billion and reflecting an 11.5% annual growth rate.

Analyst Ratings Reflect Optimism Following Q3 FY2025 Results

Citigroup analyst Asiya Merchant maintained a Buy rating and increased the price target from $63 to $75.
UBS analyst David Vogt retained a Sell rating yet raised the price target from $45 to $47.
Evercore ISI Group analyst Amit Daryanani continued with an Outperform rating and lifted the price target from $70 to $75.
Stifel analyst Matthew Sheerin kept a Hold rating while boosting the price target from $60 to $65.
Northland Capital Markets analyst Nehal Chokshi reiterated a Market Perform rating and elevated the price target from $59 to $63.
Needham analyst Mike Cikos upheld a Buy rating but raised the price target from $62 to $75.
Barclays analyst Tim Long maintained an Equal-Weight rating and adjusted the price target upward, from $56 to $61.
Piper Sandler analyst James Fish upgraded from Neutral to Overweight and the price target from $56 to $76.

Which Analyst has the best track record to show on PSTG?

Analyst David Vogt (UBS) currently has the highest performing score on PSTG with 5/7 (71.43%) price target fulfillment ratio. His price targets carry an average of $-5.32 (-10.57%) potential downside. Pure Storage stock price reaches these price targets on average within 179 days.

Core & Main Reports Q3 2024 Financial Performance with Record Sales and Beats Q4 EPS Estimates

Core & Main reported its third-quarter financial results for fiscal 2024, highlighted by an 11.5% year-over-year increase in net sales to $2,038 million.

Gross profit rose by 9.9% to $543 million, achieving a gross margin of 26.6%, up 20 basis points from the prior quarter. However, net income declined 11.4% to $140 million, primarily due to higher interest and tax expenses. Adjusted EBITDA increased 6.5% to $277 million, with a margin of 13.6%.

For Q4, Core & Main reported an EPS of $0.69, exceeding the analyst estimate of $0.66, and revenue of $2.04 billion, surpassing the consensus estimate of $1.99 billion. Additionally, operating income increased 2.8% to $223 million, while SG&A expenses rose 14.2% to $274 million.

Looking ahead, Core & Main has raised its fiscal year 2025 guidance, forecasting revenue between $7.35 billion and $7.45 billion, in line with the analyst consensus of $7.34 billion.

Analysts Raise Price Targets Following Q3 Performance

Wells Fargo analyst Sam Reid maintained an Overweight rating and raised the price target from $52 to $62.
RBC Capital analyst Mike Dahl reiterated an Outperform rating and increased the price target from $53 to $62.
Truist Securities analyst Keith Hughes kept a Hold rating but raised the price target from $38 to $56.
Baird analyst David Manthey maintained an Outperform rating and raised the price target from $60 to $66.
Barclays analyst Matthew Bouley held an Overweight rating and increased the price target from $57 to $65.

Which Analyst has the best track record to show on CNM?

Analyst Joe Ritchie (GOLDMAN SACHS) currently has the highest performing score on CNM with 8/9 (88.89%) price target fulfillment ratio. His price targets carry an average of $11.95 (31.41%) potential upside. Core & Main stock price reaches these price targets on average within 75 days.