Citi Reiterates Buy Rating on Udemy Inc (UDMY)

Citi analyst Thomas A Singlehurst reiterated a Buy rating and $20.00 price target on Udemy Inc (NASDAQ: UDMY).

The analyst comments "Udemy and its investors have endured a tough time of late. While overall growth rate for Udemy Business looks robust in a challenged cyclical environment for Enterprise L&D (implied exit rate for UB based guidance is still comfortably above 10%, which isn’t bad vs. enterprise L&D exposed peers), ultimately it is the overall growth that counts. On this, topline growth of c.7% in 2024E is underwhelming even if the group is compensating by accelerating delivery of profit/FCF targets. While we think a full-throated rerating is probably unlikely until there is a line of sight on revenue inflection (most likely not until deep into 2025E) we think the group’s valuation is extraordinary at just 1x current year EV/Sales. For investors willing to take a 12-month view, we think this is a great opportunity. We rate the group as a Buy with a $20 PT implying comfortably 100%+ upside from current levels."

For an analyst ratings summary and ratings history on Udemy Inc click here. For more ratings news on Udemy Inc click here.

Shares of Udemy Inc closed at $7.77 yesterday.

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