Analyst Jason Tilchen of Canaccord Genuity maintained a Hold rating on Nerdy (NRDY – Research Report), with a price target of $2.50.
Jason Tilchen has given his Hold rating due to a combination of factors influencing Nerdy’s current market position and future outlook. Although Nerdy reported better-than-expected Q4 results, with revenue and profitability exceeding guidance, the company faces challenges such as declining consumer and institutional revenues. These declines are attributed to lower frequency Learning Memberships and uncertainties in institutional funding.
Despite these challenges, Nerdy has made significant improvements to its marketplace infrastructure and introduced new AI-powered products aimed at enhancing user experience and driving future growth. However, the immediate financial impact of these innovations remains uncertain, with Q1 guidance falling below consensus due to pressures on gross margin from new Expert incentives. While the FY25 outlook aligns with expectations, the potential benefits of AI tools need to be more tangible before a more optimistic rating is warranted. Consequently, the Hold rating reflects a cautious approach, awaiting clearer evidence of sustained growth and stability.
In another report released today, Barclays also maintained a Hold rating on the stock with a $3.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NRDY in relation to earlier this year.