Udemy initiated with an Outperform at Scotiabank

Scotiabank analyst Nat Schindler initiated coverage of Udemy (UDMY) with an Outperform rating and $10 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 believes Udemy Business stands out as the ideal solution for companies focused on rapidly upskilling their workforces.