Canaccord Genuity reiterates Buy rating on Udemy stock amid AI strategy

Published 18/08/2025, 11:06
Canaccord Genuity reiterates Buy rating on Udemy stock amid AI strategy

Investing.com - Canaccord Genuity has reiterated its Buy rating and $12.00 price target on Udemy Inc (NASDAQ:UDMY), representing a 77% upside from the current price of $6.79. The firm remains bullish on the company’s ongoing transformation from an online content catalog to an AI-enabled reskilling platform. According to InvestingPro data, the company maintains impressive gross profit margins of 64.3%.

The research firm highlighted comments from Udemy CEO Hugo Sarrazin during a fireside chat at the 45th Annual CG Growth Conference, where he discussed the company’s strategic shift toward developing comprehensive tools for enterprise customers.

Udemy is focusing on creating value across enterprise organizations while also exploring subscription models to revitalize its consumer marketplace, according to Canaccord Genuity’s assessment.

The firm acknowledged that fiscal year 2025 represents a transition period for Udemy, facing headwinds from the reallocation of enterprise sales resources to upmarket segments and the timing of pandemic-era renewals.

Canaccord Genuity expressed increasing confidence that Udemy’s revamped go-to-market strategy and expanded product offerings will help the company capture growing demand for AI training across industries, potentially leading to accelerated revenue growth as the company moves into 2026.

In other recent news, Udemy Inc. reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.16, against a forecast of $0.12. The company’s revenue also exceeded projections, reaching $200 million compared to the anticipated $196.79 million. These results indicate a strong performance for the quarter. In related developments, Cantor Fitzgerald raised its price target for Udemy to $10.00 from $9.00, maintaining an Overweight rating. This adjustment was attributed to what the firm described as "early signs of the turnaround action plan ’Udemy 2.0’ success" under the leadership of new CEO Hugo Sarrazin. These recent developments highlight a positive trajectory for Udemy amidst its strategic initiatives.

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