Docebo (DCBO – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Josh Baer from Morgan Stanley maintained a Buy rating on the stock and has a $43.00 price target.
Josh Baer has given his Buy rating due to a combination of factors that highlight Docebo’s ongoing strengths and potential for growth. Despite some setbacks in guidance and a deceleration in 2025 expectations, Docebo has shown significant progress in moving upmarket, with a notable increase in average contract values and a strong growth in the customer segment with over $100K annual recurring revenue. This indicates a solid traction in the customer experience use case, which is a positive sign for future growth.
Moreover, Docebo’s valuation appears attractive, trading at a relatively low multiple of enterprise value to sales, especially considering its continued momentum and profitability prospects. The company has demonstrated a consistent ability to beat revenue and adjusted EBITDA expectations, which supports a positive outlook. Baer believes that with high-teens EBITDA margins projected for 2025 and a pathway to exceed 20%, combined with a double-digit growth profile, Docebo’s stock is undervalued and presents a compelling investment opportunity.
In another report released today, Needham also reiterated a Buy rating on the stock with a $42.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DCBO in relation to earlier this year.