More Revised Targets Needham’s Ryan MacDonald cut his Docebo Inc. target to US$45 from US$63 with a “buy” rating. Other changes include: Stifel’s Suthan Sukumar to US$60 from US$70 with a “buy” rating, Eight Capital’s Christian Sgro to US$60 from US$65 with a “buy” rating, CIBC’s Stephanie Price to US$53 from US$58 with an “outperformer” rating and National Bank’s Richard Tse to US$55 from US$65 with an “outperform” rating. The average is US$55.17
“In our view, management’s visibility appears high on achieving the new full-yearguide given strength and durability in the core enterprise segment from a differentiated, high-ROI external learning offering. Growth remains the primary objective despite stronger operating leverage upside to-date and DCBO intends to re-invest in R&D/S&M to maintain momentum,” said Mr. Sukumar. “Larger enterprise/government deals, growing partner influence, new product launches, and a new pricing model remain as key sources of near-term upside, supporting our view for potential conservatism on the outlook. We continue to see DCBO as best-of-breed, supporting our thesis for revenue/margin upside as the company extends share gains in the enterprise and government segments. At 4 times C25 estimated revenues, risk-reward for this rule-of-40 disruptor appears compelling.”