Josh Baer, an analyst from Morgan Stanley, maintained the Hold rating on Coursera. The associated price target remains the same with $12.00.
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Josh Baer has given his Hold rating due to a combination of factors impacting Coursera’s performance. The company showed strong results in its Q3 earnings, with revenue surpassing expectations and an increase in the FY25 revenue guidance. The Consumer segment demonstrated impressive growth, with a 13% year-over-year increase, and the company is generating significant free cash flow. However, the Enterprise segment showed signs of weakness, with a decline in net revenue retention and a modest year-over-year revenue growth of only 6%.
Despite the positive aspects, there are concerns that limit the potential for a significant re-rating of the stock. The unchanged FY25 EBITDA margin, despite the quarterly outperformance, and the implied deceleration in Q4 guidance contribute to a cautious outlook. While the Q3 results were encouraging, they were not sufficient to alter the overall narrative, leading to the Hold rating.
In another report released on October 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.50 price target.