Nerdy downgraded to Neutral from Overweight at Cantor Fitzgerald

Cantor Fitzgerald downgraded Nerdy (NRDY) to Neutral from Overweight with a price target of $1, down from $6. Nerdy delivered an inline quarter, but the disappointment is driven by a back-to-back guide-down in 2024 revenue and adjusted EBITDA, the analyst tells investors in a research note. The firm says Nerdy’s investments in the go-to-market function and institutional sales organization, in an effort to chase the Elementary and Secondary School Emergency Relief Fund funding, has diverted resources and attention in the overall business. The newly hired sales team will also need time to mature and ramp the deals pipeline, contends Cantor.