On Friday, Telsey Advisory Group adjusted its outlook on Coursera Inc (NYSE:COUR), reducing the 12-month price target to $12.00 from $15.00, while retaining an Outperform rating on the shares. The firm's decision follows a period of slower growth for the online learning platform, which has not met prior expectations. According to InvestingPro data, while the stock has seen a strong return over the last three months, it remains significantly below its 52-week high, with current analyst targets ranging from $7 to $12.
Sarang Vora, an analyst at Telsey, expressed a mix of sentiments regarding Coursera's recent performance. While acknowledging some disappointment due to the company's growth pace, Vora remains optimistic about Coursera's future. The analyst highlighted Coursera's expansive network of global learners, its partnerships for content, and a robust financial position as key factors that could drive the company's success moving forward. InvestingPro analysis confirms this financial strength, showing the company holds more cash than debt and maintains strong liquidity with a current ratio of 2.54. Get access to 6 more exclusive ProTips and comprehensive financial analysis with InvestingPro.
Despite the reduction in the price target, Telsey's stance on Coursera remains positive. The firm cites the company's current low valuation, approximately 1.0x enterprise value to sales (EV/Sales), as a compelling reason for maintaining the Outperform rating. Vora believes that the stock's valuation is attractive, especially considering Coursera's potentials. Based on InvestingPro's Fair Value analysis, the stock appears to be currently undervalued, with a gross profit margin of 53.47% demonstrating solid operational efficiency.
Telsey's revised price target of $12 is based on a conservative EV/sales multiple of less than 2.0x applied to Coursera's projected 2025 sales figure of around $722 million. This new target reflects a $3 decrease from the previous target but still suggests confidence in the company's ability to grow and achieve its financial goals in the coming year. Recent revenue growth of 9.27% and analysts' expectations of profitability this year support this outlook. Access the full Pro Research Report and detailed financial metrics for COUR and 1,400+ other stocks with an InvestingPro subscription.
In other recent news, Coursera Inc. reported strong Q4 earnings and revenue, surpassing analyst expectations. The company's Q4 adjusted earnings per share stood at $0.08, exceeding the analyst consensus of $0.04, while revenue increased by 6% year-over-year to $179.2 million, outperforming the anticipated $176.49 million. Additionally, Coursera's full-year 2024 revenue was reported at $694.7 million, reflecting a 9% growth from the previous year, and celebrated its first full year of positive adjusted EBITDA at $41.5 million. Despite these positive results, Coursera's Q1 2025 revenue forecast of $173-177 million fell short of the Wall Street consensus of $178.4 million.
In other developments, the company announced a leadership transition, with Greg Hart set to take over as President and CEO, succeeding current CEO Jeff Maggioncalda. Amid these changes, Goldman Sachs (NYSE:GS) analyst Eric Sheridan updated his assessment of Coursera, reducing the price target to $7.00 while maintaining a sell rating. Similarly, despite the company's revised growth outlook for 2025, Raymond (NSE:RYMD) James maintained a Market Perform rating on Coursera. These are among the recent developments shaping Coursera's financial landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.