Some analysts on Wall Street are eyeing Roku and Docebo as potential big winners in the coming year.
After the S&P 500 hit a record high in January 2024, signaling the start of a new bull market, analysts at Morgan Stanley, Benjamin Swinburne and Josh Baer, believe these two companies have significant upside potential. Swinburne has set a bullish price target of $125 per share for Roku, suggesting a 75% increase, while Baer predicts Docebo could soar 150% with a target of $115 per share.
Let’s take a closer look at what makes these stocks stand out:
1. Roku
Roku recently reported mixed results, with revenue showing growth but a larger-than-expected loss. While facing challenges in maintaining pricing power due to increased competition, Roku remains a dominant player in the U.S. and Mexican TV streaming market. Morgan Stanley’s optimistic target is based on the expectation of stronger advertising growth, though achieving this may prove challenging.
2. Docebo
Specializing in corporate learning management software, Docebo has shown promising growth, boasting an increase in both customer numbers and revenue. The company’s innovative use of AI to personalize learning content has positioned it as a leader in its market segment. Morgan Stanley believes the market may be undervaluing Docebo’s AI application, Docebo Shape, which could drive significant sales growth in the future.
While these bullish targets are ambitious, investors should consider the associated risks. Nonetheless, with the potential for substantial growth in both companies, they may present compelling opportunities for long-term investment strategies.
