Ryan MacDonald, an analyst from Needham, reiterated the Buy rating on Nerdy. The associated price target remains the same with $2.00.
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Ryan MacDonald has given his Buy rating due to a combination of factors that suggest potential growth for Nerdy despite recent mixed quarterly results. Although there were adjustments to revenue and EBITDA projections for FY25, MacDonald views these as temporary setbacks linked to seasonal trends rather than long-term issues.
The company has demonstrated resilience through strategic pricing adjustments that have improved average revenue per member and increased deal sizes in its institutional segment. Additionally, Nerdy is enhancing its product offerings, which could lead to increased consumer engagement as the back-to-school season approaches. These factors, combined with the potential for outperforming revised guidance, underpin MacDonald’s positive outlook on the stock.