Docebo Inc. (DCBO) PT Raised to $55 at Scotiabank

Scotiabank analyst Kevin Krishnaratne raised the price target on Docebo Inc. (NASDAQ: DCBO) to $55.00 (from $50.00) while maintaining a Sector Outperform rating.

The analyst commented: "Although revenue will likely be in line given the nature of the business (based on prior Q ARR), we see upside to EBITDA both in the quarter (margin outlook is 15.0% to 15.5%) and for CY24 guide given operating leverage in the model. In particular, we see opportunities within G&A (currently ~15% of sales, but poised to move towards ~9%-11% in mid-term) and S&M (should see benefits from company’s evolving Partner strategy and its increasing focus on Enterprise vs. SMB clients). We also look for commentary on ARR trends in the coming quarters which could benefit from the landing of new large logos and upside from new AI-based products (latter more into Q4) not currently in our ARR or SaaS revenue estimates. DCBO is one of our top picks in SaaS, trading at 4.9x CY25E sales (~26x EBITDA) and delivering the fastest enterprise ARR growth in our coverage (~30% in CY24E ex-customer downgrade). We’ve increased our target to $55 (was $50), with our valuation now based on ~6.0x CY25 EV/Sales (prior ~5.5x), reflecting an upward move in peer group multiples."

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