Docebo downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Docebo (DCBO) to Equal Weight from Overweight with a price target of $32, down from $41. The firm says its prior investment thesis was predicated on stabilizing subscription revenue growth and a path toward acceleration, stemming from Docebo’s progress up market. However, it has seen consistent deceleration in the company’s trends and customer downsizing, even before potential new macro headwinds. Docebo’s growth trajectory is unclear following a “disappointing” Q1 update, contends Morgan Stanley.