Analyst Ryan MacDonald from Needham reiterated a Buy rating on Udemy Inc (UDMY – Research Report) and keeping the price target at $11.00.
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Ryan MacDonald has given his Buy rating due to a combination of factors including Udemy’s strong performance in both revenue and earnings, despite the company’s decision to lower its revenue guidance for FY25 due to macroeconomic uncertainties and a weaker consumer segment. The company’s focus on expanding its profit margins and the increase in adjusted EBITDA guidance for FY25 are positive indicators.
Furthermore, the arrival of the new CEO, Hugo Sarrazin, brings a fresh perspective with an emphasis on operational efficiency and better monetization of Udemy’s platform and content. Although his strategy is still in the early stages, it holds potential as a catalyst for the stock. Despite some concerns about the FY26 adjusted EBITDA targets, the stock’s current valuation is seen as attractive, supporting the Buy recommendation.
According to TipRanks, MacDonald is a 4-star analyst with an average return of 4.1% and a 43.98% success rate. MacDonald covers the Technology sector, focusing on stocks such as Yext, Udemy Inc, and Docebo.