Hold Rating on Udemy Inc Amid Strategic AI Initiatives and Macroeconomic Challenges

Bank of America Securities analyst Nafeesa Gupta has maintained their neutral stance on UDMY stock, giving a Hold rating on June 5.

Nafeesa Gupta’s rating is based on Udemy Inc’s recent strategic initiatives and the current macroeconomic environment. The company has launched new AI packages aimed at enhancing AI fluency among organizations and professionals, which could potentially drive incremental revenue. Additionally, leadership changes, such as the appointment of a new CTO and the transition of the former CTO to Head of Innovation, indicate a focused effort on advancing Udemy’s product vision with an emphasis on AI.
Despite these positive developments, Gupta remains cautious due to ongoing macroeconomic challenges that could impact growth. Enterprise training budgets are currently restrained, and although there is some improvement in daily active user trends, year-over-year declines persist. These factors contribute to the Hold rating, as the uncertain economic conditions may continue to affect Udemy’s revenue potential.

According to TipRanks, Gupta is an analyst with an average return of -17.7% and a 0.00% success rate.

In another report released on June 5, Morgan Stanley also upgraded the stock to a Hold with a $9.00 price target.