Coursera’s Strong Performance and Strategic Integration Justify Buy Rating

Analyst Josh Baer of Morgan Stanley maintained a Buy rating on Coursera (COUR – Research Report), boosting the price target to $10.00.

Josh Baer has given his Buy rating due to a combination of factors that highlight Coursera’s positive performance and strategic adjustments. The company reported strong first-quarter results, surpassing expectations in revenue, gross profit, EBITDA, EPS, and free cash flow. Additionally, Coursera provided better-than-expected guidance for the future, which includes a conservative approach to macroeconomic factors.
Moreover, Coursera’s strategic decision to integrate its Degrees segment into the Consumer segment has been seen as a logical move. This change not only simplifies the company’s structure but also enhances the Consumer segment’s gross profit and margin by incorporating the high-margin revenue from Degrees. Despite the challenging macroeconomic environment, these developments have contributed to a more favorable outlook for Coursera, justifying the Buy rating.

Baer covers the Technology sector, focusing on stocks such as Coursera, Udemy Inc, and Box. According to TipRanks, Baer has an average return of 2.5% and a 46.67% success rate on recommended stocks.