Udemy downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Udemy to Underweight from Equal Weight with a price target of $7.50, down from $10. Udemy’s shift in strategy could be a sign of weakening demand, the analyst tells investors in a research note. The firm says the company’s profitability targets rely on significant operating leverage, which it at odds with its lower sales growth. In addition, negative third party data and consensus estimates being “too high” create an unattractive risk/reward profile, contends Morgan Stanley.