William Blair analyst Stephen Sheldon has maintained their neutral stance on UDMY stock, giving a Hold rating yesterday.
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Stephen Sheldon’s rating is based on a combination of factors that reflect both the opportunities and challenges facing Udemy Inc. The company reported a slight revenue increase and a stronger profit performance than expected, with a modest upward revision in full-year guidance. However, the growth in Udemy Business, which is the main driver, has been slowing down for several quarters, and consumer revenue continues to decline.
Furthermore, while Udemy’s valuation appears lower compared to peers like Coursera, the company’s growth projections for the coming years are relatively modest. The updated guidance suggests flat revenue growth in 2025 and only slight improvements in the following years. These factors, combined with the pressure on learning and development budgets, contribute to the Hold rating, indicating a balanced view of the stock’s potential risks and rewards.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.