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Summary

  • Tech stocks have benefited from the AI-fueled disruption, making these stocks a good watch during this earnings season.
  • Couchbase, a cloud database provider, has a mean consensus price target of US$ 21.40 post the release of its Q1 FY2024 results.
  • Braze, an engagement platform provider, has a consensus price target of US$ 43.67 post the release of its Q1 fiscal 2024 results.

Technology stocks have had an interesting run during this year, with artificial intelligence (AI) taking center stage. Many tech stocks have benefited from the disruption caused by AI, making these stocks a good watch during this earnings season.

Increased revenues and stable growth of some tech stocks have triggered positive price movement. Two such NASDAQ-listed tech stocks are Couchbase (NASDAQ: BASE) and Braze Inc. (NASDAQ: BRZE), on which analysts are bullish.

Here is a closer examination of these stocks and why brokers are positive on them.

Couchbase Inc. (NASDAQ: BASE)

Couchbase is a cloud database provider that offers business-critical applications on a scalable platform. The company helps developers in building and deploying applications that are useful for fulfilling certain specified tasks or missions.

As per data available on EODHD/Others, Couchbase has a mean recommendation rating of 1.8 on a scale of one to five. Here, one represents ‘Strong Buy’ rating and five represents ‘Strong Sell’ rating. The mean consensus price target on the stock is US$ 21.40, an upside potential of 34.59% on its Monday’s closing price of US$ 15.90.

Image source: ©2022 Kalkine®; Data source: BASE EODHD/Others

Brokers such as Guggenheim Securities, D.A. Davidson & Company and Stifel Nicolaus and Company are bullish on the stock following the release of its Q1 FY24 earnings. Guggenheim Securities gave a price target of US$ 23 on BASE, while D.A. Davidson & Company gave it a price target of US$ 24. Meanwhile, Stifel Nicolaus and Company’s price target of US$ 22 on BASE was 38.36% higher than its Monday’s closing price of US$ 15.90.

Couchbase’s total revenue in Q1 of fiscal 2024 was 18% higher on a year-on-year basis at US$ 41 million. The company also reported 21% year-on-year growth in subscription revenue at US$ 38.5 million during the quarter.

Braze Inc. (NASDAQ: BRZE)

Braze aims at creating smoother customer-brand interactions through its engagement platform. Its major focus is on sectors such as retail and e-commerce, media and entertainment as well as hospitality and travel.

EODHD/Others data suggests that out of the 17 analysts that have covered the stock, ten have given it a ‘Buy’ rating. Meanwhile, four have given it a ‘Strong Buy’ rating, three have given it a ‘Hold’ rating and none have given it a ‘Sell’ or ‘Strong Sell’ rating. The mean recommendation rating on Braze is 1.9 on a scale of one to five. The consensus price target on the stock is US$ 43.67, which is 5.92% higher than its closing price of US$ 41.23 on Monday.

Braze reported a 31.3% year-on-year increase in revenue in Q1 of fiscal 2024 to US$ 101.8 million. The company’s subscription revenue was US$ 97.1 million, while gross margin was 67.9% for the quarter.

Image source: ©2022 Kalkine®; Data source: BRZE EODHD/Others

Post the release of these financial results, brokers maintained their ‘Buy’ ratings on BRZE. However, the stock received target price upgrade from brokers. Notably, Scotiabank gave a price target of US$ 39 on BRZE, while Wells Fargo gave it a price target of US$ 43. Loop Capital and Cowen and Company were also bullish on BRZE as they both gave a price target of US$ 45 on the stock.