Needham analyst Ryan MacDonald has reiterated their bullish stance on COUR stock, giving a Buy rating today.
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Ryan MacDonald has given his Buy rating due to a combination of factors including Coursera’s impressive second-quarter performance, which exceeded expectations in both consumer and enterprise segments. The surge in demand for Coursera’s offerings, driven by the popularity of GenAI, has been a significant contributor, with the platform gaining 7.5 million new learners and surpassing 10 million enrollments in GenAI courses.
Additionally, Coursera’s introduction of new AI functionalities such as Coach, translations, and Career Academy positions the company well for continued growth in its consumer segment. The improvements in gross margin and the efficiencies gained from AI have also led to a quicker than anticipated expansion in EBITDA margins. Despite the strong market reaction to these results, MacDonald maintains a positive outlook, noting that the stock is still attractively valued at just 1x FY26 revenues.