In a report released today, Ryan MacDonald from Needham reiterated a Buy rating on Udemy Inc, with a price target of $11.00.
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Ryan MacDonald has given his Buy rating due to a combination of factors, including the promising strategies introduced by Udemy’s new CEO, Hugo Sarrazin. These strategies encompass new go-to-market initiatives, AI product offerings, and merchandising opportunities, which have already shown positive early results, such as a record pipeline of high-value deals and improved win rates.
Despite the challenges posed by the renewal of COVID-era cohorts, the management is optimistic about the company’s revenue growth trajectory improving by 2026. The combination of anticipated revenue growth and strong margin expansion makes Udemy’s shares appear attractively valued at their current price, reinforcing the Buy rating.
According to TipRanks, MacDonald is a 4-star analyst with an average return of 5.8% and a 47.59% success rate. MacDonald covers the Technology sector, focusing on stocks such as Yext, Coursera, and Udemy Inc.
In another report released on July 26, TR | OpenAI – 4o also upgraded the stock to a Buy with a $8.50 price target.