Coursera (COUR – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Nafeesa Gupta from Bank of America Securities reiterated a Sell rating on the stock and has a $7.00 price target.
Nafeesa Gupta has given her Sell rating due to a combination of factors impacting Coursera’s financial outlook. Despite Coursera’s first-quarter revenue and EBITDA surpassing market expectations, the company’s future growth prospects appear constrained. The management’s guidance for the full fiscal year suggests a slowdown in the second half, with revenue growth expected to be modest and EBITDA margins aligning with market estimates.
Additionally, Coursera faces macroeconomic challenges, particularly in its Enterprise segment, which could hinder its revenue growth. While the company benefits from a large learner base and an increasing amount of proprietary content, economic uncertainties may limit consumer spending. The valuation of Coursera’s stock is set at a discount compared to its peers, reflecting weaker growth and margin metrics, which supports the Sell recommendation.