Street Calls of the Week
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $13.00 price target on Coursera Inc (NYSE:COUR) following the company’s third-quarter 2025 results. According to InvestingPro analysis, Coursera appears undervalued at its current trading price of $10.56, with analysts setting targets ranging from $9 to $15.
The online education platform delivered results that exceeded FactSet consensus on revenue, operating income, and margin, while demonstrating healthy EBITDA and free cash flow expansion. Despite these positive metrics, Coursera stock fell approximately 1% in after-hours trading following the announcement. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.55 and minimal debt, holding more cash than debt on its balance sheet.
Coursera reported 10.3% year-over-year revenue growth in Q3, marking its first double-digit growth since the second quarter of 2024. The company added 7.7 million new global learners during the quarter, an 18% year-over-year increase, bringing its total registered learner base to 191 million.
The company’s Consumer segment performed well with 13% year-over-year growth, while the Enterprise segment faced challenges with its net retention rate declining approximately 400 basis points quarter-over-quarter to 89%. Coursera also indicated a higher-than-expected seasonal revenue drop-off of approximately 1.4% for the fourth quarter of 2025.
On the profitability front, Coursera reported adjusted EBITDA of $15.6 million at a margin of 8.0%, and free cash flow of $26.6 million at a margin of 13.7%, while maintaining its adjusted EBITDA margin guidance at 8% for the year.
In other recent news, Coursera Inc. reported its third-quarter 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $0.10, which was above the forecasted $0.08. The company also exceeded revenue projections, posting $194.2 million against the anticipated $190.29 million. Despite these positive earnings and revenue results, Goldman Sachs reiterated its Sell rating on Coursera, maintaining a price target of $9.00. The firm acknowledged Coursera’s solid performance in revenue and adjusted EBITDA, particularly noting the strength in the consumer segment. Coursera’s gross margin and adjusted EBITDA results were highlighted as a reflection of its strategic efforts in balancing growth investments with margin progression. These developments come amid Coursera’s ongoing focus on product and content investment. The company’s financial results indicate a robust quarter, yet analyst sentiment remains cautious.
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