Docebo gets new $60.00 price target at National Bank

Following second quarter results he described as strong, National Bank Financial analyst Richard Tse has raised his price target on Docebo (Docebo Stock Quote, Chart, News TSX:DCBO).

In a research update to clients Sunday, Tse maintained his “Outperform” rating and raised his one-year price target on the stock from $55.00 to $60.00, implying a return of 14.9 per cent at the time of publication.

“As a recap of our thesis, our view has been that a differentiated product offering led by technology and a highly efficient sales and marketing model is putting Docebo in a position to make meaningful market share gains,” the analyst said. “And while that may be the case, we’re increasingly impressed with the Company’s operating prowess when it comes to scaling up operational execution that’s further adding opportunity to expand its share of the addressable market.”

Tse said he has a growing appreciation for the company’s operating prowess, sees big potential in its OEM strategy, notes that the company is a “diligent capital allocater and sees that it has increasing operating leverage to be won with scaling its operations.

“Bottom line – we continue to believe DCBO is an under the radar tech name that has the chops to play with all the other Canadian tech stars,” the analyst said. “We’re reiterating our Outperform rating (unchanged) with an increased target to C$60 (was C$55) based on a multi-staged DCF that captures a normalized run rate. The target implies 15x EV/Sales on F2021E (was 14.0x).”