Analysts at Stifel GMP are expecting Docebo Inc to report a “solid print, in-line with guidance/expectations, reflecting another quarter of profitable growth,” when the company announces its first quarter 2023 financial results before the markets open on May 11, 2023.
In a note to clients published on Monday, the analysts wrote that despite a backdrop of a tougher macro and lengthening sales cycles, the company has been executing well in recent quarters, citing "durable growth tailwinds as recent investments position the company to capture greater share of an expanding (corporate e-learning) target market as more enterprises embrace the reality of hybrid work and employee training (upskilling/reskilling) and retention via e-learning become key strategic priorities in what is an increasingly tougher labour market."
“Thus, we continue to see a robust growth outlook ahead given an expanding pipeline, scaling partner channel, and growing international penetration, with potential for outperformance on EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow generation given improving leverage,” the analysts said.
They added that M&A remains a potential upside catalyst for its stock price, given the company's strong balance sheet, and they continue to view Docebo’s valuation as “attractive”.
Stifel GMP currently has a ‘Buy’ rating and a US$60 per share target price on Docebo stock.
Contact Sean at sean@proactiveinvestors.com