Needham analyst Ryan MacDonald has reiterated their bullish stance on DCBO stock, giving a Buy rating today.
Ryan MacDonald has given his Buy rating due to a combination of factors that highlight Docebo’s potential for long-term growth despite recent challenges. The company’s fourth-quarter results showed a mixed performance, with both revenue and earnings surpassing expectations, although future guidance appeared to fall short of consensus estimates. However, this outlook was impacted by a foreign exchange headwind and a strategic shift in professional services work to major system integrator partners, which is expected to improve margins in the short term and provide significant benefits in the long run.
MacDonald remains optimistic about Docebo’s margin trajectory, particularly as investments in artificial intelligence are anticipated to enhance operational efficiency. This positions the company to achieve EBITDA margins in the mid-20s by fiscal year 2026. Consequently, the recent decline in share price is viewed as a compelling opportunity for investors to consider buying into Docebo’s stock.