On Oct 26, major Wall Street analysts update their ratings for $Coursera (COUR.US)$, with price targets ranging from $10 to $15.
Morgan Stanley analyst Josh Baer maintains with a buy rating, and adjusts the target price from $15 to $10.
Loop Capital analyst Yun Kim maintains with a buy rating, and adjusts the target price from $20 to $12.
KeyBanc analyst Devin Au CFA initiates coverage with a buy rating, and sets the target price at $11.
RBC Capital analyst Rishi Jaluria maintains with a buy rating, and adjusts the target price from $18 to $10.
Telsey Advisory analyst Joe Feldman initiates coverage with a buy rating, and sets the target price at $15.
Furthermore, according to the comprehensive report, the opinions of $Coursera (COUR.US)$'s main analysts recently are as follows:
A recent analysis observed that while Coursera's Q3 results surpassed consensus, there was a reduction in Q4 revenue guidance and a decrease in FY24 revenue growth projections from 10% to 9%. This was attributed to declining consumer retention and a 4 point decrease in Net Revenue Retention to 89% within the Enterprise segment. The expectation is that this could exert downward pressure on the stock. Nonetheless, the viewpoint is that shares currently represent a value that is too significant to overlook, given the company's profitable growth trajectory.
It is evident that Coursera is confronted with rapidly evolving market circumstances in its target markets, accompanied by additional challenges due to unfavorable macroeconomic factors in its North American region, a demographic trend towards more affordable emerging regions, and a more gradual uptake of Gen-AI technology among educational institutions. Nevertheless, Coursera is perceived to be aptly positioned to transform the higher education landscape in emerging markets, where there is a comparatively lower resistance to change.
The company delivered marginally improved Q3 revenue and EBITDA figures, yet projected a reduced revenue forecast for Q4, predominantly due to a decline in consumer strength, which is seen in the lesser retention of professional certificates. Although the reduced forecast is seen as disheartening, there remains an optimistic stance on the company's enduring potential within enterprise and degree offerings.
The recent quarter for Coursera was challenging, prompting a reassessment of the near-term growth expectations, which saw the company's shares decline by 19% after hours. The Consumer segment of Coursera is facing renewed difficulties as retention trends have shown signs of weakening, while the performance of its Enterprise business has been inconsistent. Despite these challenges, there remains long-term confidence in the company's prospects.
Coursera's third-quarter outcomes surpassed expectations, largely due to judicious expenditure management. Nevertheless, consumer engagement showed signs of weakening, with anticipated retention challenges likely extending into the fourth quarter. Additionally, a drop in Enterprise net retention revenue was observed, attributed to the phasing out of certain Government contracts. Despite these issues, there's an indication of 'stabilization' within the realm of corporate learning.
Here are the latest investment ratings and price targets for $Coursera (COUR.US)$ from 5 analysts:
Note:
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