Buy Rating Affirmed for Udemy Inc. on Strong Q1 Performance and Attractive Valuation Despite Leadership Changes

Analyst Ryan MacDonald of Needham reiterated a Buy rating on Udemy Inc (UDMY – Research Report), retaining the price target of $15.00.

Ryan MacDonald has given his Buy rating due to a combination of factors including Udemy Inc’s robust first quarter performance for fiscal year 2024, which has led to an increased adjusted EBITDA outlook. Despite narrowing the topline guidance due to execution issues and upcoming changes in leadership, MacDonald finds Udemy’s valuation compelling, with the stock priced near 1x estimated FY24 revenue. This is seen as attractive, especially in the context of an anticipated double-digit revenue growth.
Despite the lower outlook for Udemy Business (UB), owing to the departure of the Chief Revenue Officer, MacDonald believes that the market will appreciate the company’s strong cost management and the raised profitability forecast. Additionally, the improved consumer outlook, bolstered by the first quarter’s strength, reinforces MacDonald’s confidence in the stock. Hence, despite potential investor concerns regarding the details of the Q1 update, the overall financial discipline and growth prospects of Udemy justify the Buy recommendation.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Udemy Inc (UDMY) Company Description:

Udemy Inc operates a marketplace platform at the center of a vibrant knowledge network. The platform provides over 44 million learners with access to over 183,000 courses in 75 languages and over 180 countries.