After attending the company’s annual user conference, National Bank Financials analyst Richard Tse has maintained his “Buy” rating on Docebo (DCBO Stock Quote, Chart, News, Analysts, Financials NASDAQ:DCBO).
Tse says he came away impressed from the event.
“We had the opportunity to attend Docebo Inspire, the Company’s annual user conference early this week,” the analyst noted. “The well-attended event of 600 provided an opportunity to speak with customers, prospects and partners while demo-ing various software modules with an opportunity to hear about the Company’s upcoming product roadmap in addition to a dedicated session for investors and analysts. While we already liked this name going into this event, what we learned on the ground (actually) elevated our view that Docebo is one of the highest quality small/mid-cap companies in our technology coverage universe. As we see it, in a market (Learning Management) that’s likely one of the most competitive in enterprise software, Docebo has managed to rise above many of its peers care of Management’s ability to innovate and execute with an eye on driving operating leverage from a disciplined approach to capital allocation. Bottom line, the conference reinforced our thesis on why DCBO remains one of our Top Picks”
In a research update to clients September 21, Tse maintained his “Outperform” rating and one-year price target of (US) $50.00 on DCBO.
The analyst thinks Docebo will post Adjusted EBITDA of $13.7-million on revenue of $179.8-million in fiscal 2023. He expects those numbers will improve to EBITDA of $29.4-million on a topline of $225.2-million the following year.
Tse says he sees growing momentum at DCBO
“Based on our discussions with existing customers, prospects and partners, we believe momentum is building for Docebo,” the analyst argued. “While what we heard may be anecdotal, it’s been supported in the underlying numbers – particularly with respect to scaling large enterprise win rates. If you’ve been following Docebo, you may recall in its early days, the Company largely served SMBs. Yet, in a short period of time, Docebo has scaled into a growing roster of increasingly larger enterprises – where Docebo is able to support hundreds of thousands of concurrent learners per client.”
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