Coursera's Consumer Strength Offers An Attractive Buy Amid Enterprise Spending Slump: Analyst

Needham analyst Ryan MacDonald reiterated a Buy rating on the shares of Coursera Inc COUR and raised the price target from $19 to $21.

Coursera reported a stronger-than-expected 3Q23 with revenue growing 21.4% Y/Y, notes the analyst.

Coursera added 6.5 million registered learners in 3Q23 and ended the quarter with 136 million on the platform for its 12th consecutive quarter with at least 5 million registered learners added, notes the analyst.

Strength in 3Q was driven by COUR's consumer segment, which delivered its 3rd straight quarter of rev growth acceleration, writes the analyst.

The macroeconomic condition negatively impacted the enterprise spending environment, with growth coming in at 14.2%, below the analyst's 19.3% estimate.

Degrees segment, the analyst says, came in below expectations as enrollments of 20,432 were below the analyst's estimate of 22,331, with 15.3% growth.

While investors may question the variability in degrees, we believe consumer strength & continued margin progress in FY24 will alleviate concerns, creating an attractive buying opportunity, concludes the analyst.

Also Read: Coursera Should Be Profitable Over Time Given Scalable Nature Of Its Learning Platform, Analyst Says

Price Action: COUR shares are trading higher by 1.46% at $17.43 on the last check Friday.