Docebo’s Strong Market Position and Growth Potential Earns Buy Rating Despite OEM Concerns

Tip Ranks
2025.11.07 17:15
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Analyst Ryan MacDonald from Needham has reiterated a Buy rating on Docebo, lowering the price target to $38.00 from $42.00. This rating is based on Docebo's strong market position and growth potential, highlighted by impressive third-quarter results and effective enterprise-focused strategies. Despite concerns over an OEM relationship reduction, MacDonald believes the company can overcome these challenges. Oppenheimer also initiated coverage with a Buy rating and a $35.00 price target.

Analyst Ryan MacDonald from Needham reiterated a Buy rating on Docebo and decreased the price target to $38.00 from $42.00.

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Ryan MacDonald has given his Buy rating due to a combination of factors that highlight Docebo’s strong market position and growth potential. The company’s impressive third-quarter results demonstrate its effective execution of an enterprise-focused go-to-market strategy, which is further bolstered by robust relationships with systems integrators. This has resulted in healthy win rates and annual contract value growth.
Moreover, Docebo’s continued strength in the state, local, and education sectors, along with earlier-than-expected federal wins and a growing federal pipeline, positions the company well for fiscal year 2026. While there are concerns about the reduction of an OEM relationship, MacDonald believes that the company can mitigate these challenges through its enterprise and federal strengths, alongside a projected margin expansion of approximately 300 basis points. The adjusted price target reflects recent SaaS multiple compression rather than any decline in business performance, aligning Docebo’s valuation with the median multiple of its growth group.

In another report released on November 5, Oppenheimer also initiated coverage with a Buy rating on the stock with a $35.00 price target.

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