Docebo initiated with a Buy at Needham

Needham initiated coverage of Docebo with a Buy rating and $56 price target. The analyst views Docebo as a “differentiated” learning management system vendor that is “quickly” gaining share through the evolution of corporate learning beyond human resources into the extended enterprise. The firm’s industry work suggests that learning and training are top priorities for HR buyers heading into 2024 and the total addressable market for Docebo is “significant” at $25B. Docebo is poised to take share and deliver a balanced mix of growth and profitability that could put it in the “Rule of 40” discussion in fiscal 2024, the analyst tells investors in a research note. Needham views the stock as undervalued.