Udemy Inc (UDMY) PT Lowered to $11 at Cantor Fitzgerald

Cantor Fitzgerald analyst Brett Knoblauch lowered the price target on Udemy Inc (NASDAQ: UDMY) to $11.00 (from $18.00) while maintaining a Overweight rating.

The analyst comments "Investment Summary. We reiterate our Overweight rating and decrease our 12-month PT from $18 to $11 on overall Ed Tech sector volatility plus strategic focus to drive operational efficiency/growth. Udemy delivered what we viewed as an inline/slightly positive quarter on good performance, exceeding FactSet consensus expectations on revenue, operating income/margin, and EBITDA. After-market price performance was receptive on the print (up 5%+ vs. S&P 500 flat/+0.16%) and was driven by what we believe to be a step in the right direction. We are highly intrigue of the return of Co-Founder & CTO Mr. Eren Bali to lead the tech/product roadmap and acknowledge early progress of Chief Revenue Officer Mr. Rob Rosenthal making adjustments to the go-to-market to optimize efficiency. Similar to same macro industry headwinds faced by Coursera (COUR, OW) that reported last Thursday (see our 3Q24 note here), we envision Udemy's stock performance will likely be volatile in the foreseeable future (perhaps next ~6 months), until clarity on the execution around the new strategic plan garners tangible results/improvements. While we are pivoting to a defensive posture on the general Ed-Tech sector, we do believe content leaders like Udemy and Cousera will gradually recover, and investors should take advantage of this very deep discount as an attractive position-building opportunity for the long-term."

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