DCBO is a buy, this analyst says

ATB Capital Markets analyst Gavin Fairweather maintained an “Outperform” rating and C$36.00 target on Docebo (Docebo Stock Quote, Chart, News, Analysts, Financials TSX:DCBO) in a May 11 update, saying first-quarter results showed improving go-to-market execution and deal flow.

“There were few surprises in Q1/26 results given the pre-release, but results came in at the high end of ranges,” Fairweather said.

Docebo reported revenue of $65.6-million, up 15% year-over-year, including four points from M&A. Subscription revenue rose 12% to $60.6-million, while professional services revenue increased 60% to $5.0-million on enterprise implementations. Adjusted EBITDA was $11.0-million, up 23%, with a 16.8% margin.

Fairweather said ARR reached $249-million, up 11%, while organic ARR grew about 13.7% after adjusting for the legacy OEM customer and foreign exchange.

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Mid-market remained strong and enterprise bookings are improving under new sales leadership, helped by stronger RFP flow, tighter processes and a more focused ideal customer profile. Enterprise customers with more than $100,000 in ARR rose 31% to 563.

“We are encouraged to see the core go-to-market execution improving and see catalysts for further strengthening given the Government opportunity, 365Talents cross-sell, and introduction of AI modules to monetize,” Fairweather said.

Docebo maintained 2026 guidance for revenue of $271-million to $273-million and Adjusted EBITDA of $54.5-million to $56.5-million. Fairweather values the stock at 2.5x 2026 sales, equal to 12.4x EBITDA.

He expects Docebo to generate Adjusted EBITDA of $55.0-million on revenue of $272.3-million in fiscal 2026, improving to $66.6-million on revenue of $300.1-million in fiscal 2027.

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