DCBO stock wins price target raise at Scotia

Following a management shuffle, Scotia Capital analyst Kevin Krishnaratne is feeling a little more bullish about Docebo (Docebo Stock Quote, Chart, News, Analysts, Financials Nasdaq:DCBO).

In November 22, Docebo announced that founder Claudio Erba would step down as CEO to be replaced, on an interim basis, by Alessio Artuffo, who will take the reins in March of next year. Erba will become the company’s Chief Innovation Officer.

The company simultaneously announced a share issuer bid to acquire up to (US) $100-million of its own stock.

“Docebo has built a strong foundation for its customers and employees and is positioned for extraordinary success in the future,” Erba said. “Innovation is my passion and this provides me with the opportunity to focus on innovation exclusively. It’s an important next step for a high-growth organization when the entrepreneur recognizes the skill sets necessary to realize the company’s full potential.”

As reported by the Globe and Mail, Krishnaratne, in a research update to clients November 23, raised his price target on DCBO from (US) $50.00 to $60.00to US$60, while maintaining his “Sector Perform” rating on the stock.

The analyst commented on the development.

“We view Mr. Erba’s move to focus exclusively on innovation and product along with the potential for Mr. Artuffo, who has over a decade of experience at the company including accelerating Docebo’s U.S. presence, as being named permanent CEO as positive,” said Mr. Krishnaratne. “Additionally, the $100-million SIB signals confidence in the company’s recurring SaaS and increasingly profitable FCF model, complemented by tuck-in M&A to enhance Docebo’s industry leading and strong LMS tech stack, in our view.”

Shares of DCBO on the Nasdaq closed Wednesday at $49.45.