Morgan Stanley Reiterates Hold Rating on Docebo with $34.00 Price Target

Morgan Stanley analyst Josh Baer maintained a Hold rating on Docebo with a price target of $34.00. The company has a consensus rating of Strong Buy and a price target of $37.23. Docebo has a market cap of $905.3M and a P/E ratio of 42.98. Corporate insider sentiment is negative, with an increase in insiders selling their shares.

Docebo Inc. (NASDAQ: DCBO; TSX: DCBO) has revised its financial guidance for the fiscal year ended December 31, 2025. The company has increased its total revenue growth forecast to 10%-11% from the previously stated 9%-10%, and its subscription revenue growth projection has been raised to 10.75%-11.75%. Additionally, Docebo maintains its adjusted EBITDA as a percentage of total revenue at 17%-18% [1].

The updated financial guidance reflects the company's strong performance in the second quarter of 2025, where it reported total revenue of $60.7 million, an increase of 14% year-over-year. Subscription revenue, which accounted for 94% of total revenue, grew by 15% to $57.1 million. Gross profit increased by 15% to $49.1 million, while net income declined to $3.1 million, or $0.10 per share, compared to $4.7 million, or $0.15 per share in the prior year [1].

Docebo's adjusted EBITDA as a percentage of total revenue remained steady at 15.2%, and free cash flow increased to $11.4 million, representing 18.7% of total revenue. The company also reported a significant increase in annual recurring revenue (ARR) to $233.1 million, up $27.2 million from the previous year [1].

The revised financial guidance underscores Docebo's commitment to its AI-first strategy and its ability to navigate the uncertain macro environment. The company's strategic initiatives, such as the appointment of Mark Kosglow as Chief Revenue Officer and the achievement of FedRAMP Moderate Authorization, are expected to drive durable, long-term growth [2].

Analyst Ratings and Market Sentiment

Morgan Stanley analyst Josh Baer maintained a Hold rating on Docebo with a price target of $34.00. The company has a consensus rating of Strong Buy and a price target of $37.23. Docebo has a market cap of $905.3M and a P/E ratio of 42.98. Corporate insider sentiment is negative, with an increase in insiders selling their shares [3].

Conclusion

Docebo's strong performance and revised financial guidance are a testament to its leadership in the learning management industry. The company's focus on innovation and customer satisfaction continues to position it as a key player in the market. As the AI-driven education sector grows, Docebo's ability to leverage AI for personalized, data-driven training solutions will likely cement its leadership in a sector poised for explosive growth.

References:
[1] https://www.ainvest.com/news/docebo-raises-fy25-revenue-growth-view-10-11-raises-subscription-revenue-growth-10-75-11-75-2508/
[2] https://www.ainvest.com/news/docebo-ai-driven-transformation-strategic-edge-evolving-lms-market-2508/
[3] Morgan Stanley Analyst Report, July 2, 2025