William Blair analyst Stephen Sheldon has maintained their neutral stance on UDMY stock, giving a Hold rating on July 25.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Stephen Sheldon’s rating is based on a combination of factors that reflect both positive and negative aspects of Udemy Inc’s recent performance and future outlook. The company reported a modest revenue beat and stronger profit figures, with a slight increase in full-year guidance. While Udemy Business continues to be the main growth driver, its growth has decelerated for 13 consecutive quarters, indicating persistent challenges in the macroeconomic environment that affect learning and development budgets.
Despite achieving gross margins above estimates and a significant year-over-year growth in gross profit, the overall revenue growth remains modest. The updated guidance for 2025 shows a narrowed revenue range with flat growth at the midpoint, and a slight improvement in adjusted EBITDA. These factors, along with the expected decline in consumer revenue and the unchanged growth rate for Udemy Business, contribute to the Hold rating as the company faces ongoing challenges in sustaining robust growth.
Sheldon covers the Technology sector, focusing on stocks such as Agilysys, Olo, and Par Technology. According to TipRanks, Sheldon has an average return of 8.9% and a 59.14% success rate on recommended stocks.
In another report released on July 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.