Cantor Fitzgerald Downgrades Nerdy (NRDY) to Neutral

Cantor Fitzgerald analyst Yi Fu Lee downgraded Nerdy (NYSE: NRDY) from Overweight to Neutral with a price target of $1.00 (from $6.00).

The analyst comments: "Nerdy delivered what we characterize as an inline quarter coming in with mild/humble expectations following a cut in guidance last period; results exceeded FactSet consensus expectations on revenue, operating income/margin, EPS and free cash flow. The disappointment, however, is driven by a back-to-back guide down in 2024E revenue and adjusted EBITDA/profitability for the year. In our view, Nerdy's investments in the go-to-market function and Institutional sales organization, in an effort to chase the FYE (Sept 30) Elementary and Secondary School Emergency Relief Fund (ESSER) funding had diverted resources/attention in the overall business. The newly hired sales team will also need time to mature and ramp the deals pipeline; hence, it was not able to fully take advantage of the seasonally "hot" back-to-school season calling for extra tutoring help. If we were to take the view from a glass-half-full perspective, we believe management does have a game plan in place, but just needs time to execute. Therefore, we believe as the sales force matures in experience/pipeline development, Nerdy growth should reaccelerate in the back half of 2025E."

For an analyst ratings summary and ratings history on Nerdy click here. For more ratings news on Nerdy click here.

Shares of Nerdy closed at $0.89 yesterday.

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