Coursera initiated with a Sector Perform at Scotiabank

Scotiabank initiated coverage of Coursera (COUR) with a Sector Perform rating and $9 price target Udemy reported a 99% net retention rate for its overall Udemy Business segment in Q3 with a stronger 104% NRR for larger customers, giving visibility into its ability to retain and grow revenue with larger clients, the analyst tells investors in a research note. The firm says Coursera reported a significantly lower 89% NRR for its enterprise segment, “a concerning level that suggests challenges in retaining and expanding spend across enterprise customers.” Scotiabank says Udemy and Coursera operate in a highly competitive online education market.