Morgan Stanley Downgrades Udemy Inc (UDMY) to Underweight

Morgan Stanley analyst Josh Baer downgraded Udemy Inc (NASDAQ: UDMY) from Equalweight to Underweight with a price target of $7.50 (from $10.00).

The analyst comments: "Large long-term opportunity for differentiated learning platform; yet setup, fundamentals and strategic shift create medium-term risk to shares. Growth deceleration to continue due to weak web traffic and consumer conversion to paid, tighter enterprise budgets, macro & impact to GTM from strategic shift. Achieving CY26 EBITDA target of $130-150MM would be a positive, though we discount achievability given assumptions needed to bridge from $8MM in CY23. We see risk in realizing 7.5% of operating leverage in bridge to CY27 20% EBITDA margin given our lower top-line estimates... creating potential for negative estimate revisions ahead."

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

Shares of Udemy Inc closed at $8.13 yesterday.

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