CIBC Capital Markets maintained its outperformer rating and price target of US$28.00 on the shares of Docebo (DCBO.TO, DCBO) following the company's annual Inspire user conference in Miami.
The bank noted the company preannounced "stronger-than-expected" preliminary first-quarter expectations, raised 2026 guidance, and announced several enhancements to the core platform and a number of AI-enabled product releases at the conference. The increase in outlook, the bank believes, is directly attributed to strength in the underlying enterprise business and includes two more-than $1 million enterprise expansion deals signed in Q1.
"Overall we came away from the conference increasingly confident in F2026 (increased) guidance, supported by solid underlying ARR growth and a refreshed go-to-market and product strategy that refocuses on enterprise and consistent platform improvement," said analyst Erin Kyle. "We continue to view shares as attractively valued, trading at 7.3x 2027E EV/EBITDA and 1.6x 2027E EV/Sales which is a discount to small-cap SaaS peers at ~8x and ~2x, respectively."
CIBC expects double-digit growth in annual recurring revenue (ARR) to continue to be supported by growth in the underlying business, with a gradually declining impact from Dayforce churn offset by high double-digit ARR growth from the 365Talents business, as the year progresses. It revised its estimates to reflect stronger-than-expected Q1 results and raised full-year guidance for consolidated revenue, subscription revenue and adjusted EBITDA.
For fiscal 2026, CIBC forecast subscription revenue growth of 11% and adjusted EBITDA margins of 20.3% for the full year. It also increased its adjusted EBITDA estimate for fiscal 2027 and now model margins of 22.2%.
"We expect margin expansion should be supported by continued operating leverage in G&A and S&M as the company leverages AI internally," added Kyle.
Price: $24.24, Change: $-2.00, Percent Change: -7.62%