Coursera’s Strong Start to FY2025 and Strategic AI Investments Justify Buy Rating

Needham analyst Ryan MacDonald reiterated a Buy rating on Coursera (COUR – Research Report) today and set a price target of $11.00.

Ryan MacDonald has given his Buy rating due to a combination of factors including Coursera’s strong performance at the start of fiscal year 2025, where the company exceeded expectations in its first quarter results. The reinstatement of full-year guidance with targets surpassing consensus further supports this positive outlook.
Additionally, Coursera’s strategic investments in AI features and enhanced content are expected to drive growth and improve operational leverage, despite the initial costs. The company’s current valuation, combined with the potential benefits from generative AI advancements, presents an appealing risk/reward proposition, particularly as both consumers and enterprises increasingly look for solutions to support reskilling in the evolving AI landscape.

MacDonald covers the Technology sector, focusing on stocks such as Yext, Coursera, and Docebo. According to TipRanks, MacDonald has an average return of 4.1% and a 43.98% success rate on recommended stocks.