TSX gains after CPI shows US inflation rose 3%
Investing.com - Needham has reiterated its Buy rating and $14.00 price target on Coursera Inc (NYSE:COUR) ahead of the company’s third-quarter earnings report, due in 3 days. According to InvestingPro data, the stock has shown strong momentum with a 37% gain over the past six months, though it currently appears undervalued based on Fair Value analysis.
The research firm noted that Coursera is coming off a stronger-than-expected second quarter, during which both consumer and enterprise segment growth accelerated. The company previously maintained its full-year revenue guidance of $738 million to $746 million and its full-year EBITDA margin guidance of 8.0%. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.55 and holds more cash than debt on its balance sheet.
Needham believes investor focus will remain on profitability in the third quarter, alongside growth in the consumer segment. The firm highlighted Coursera’s recent partnership announcement with OpenAI as creating an attractive top-of-funnel opportunity for the company.
Within the enterprise segment, Needham expects investors to monitor the trajectory of Net Revenue Retention (NRR) and updates to the enterprise segment strategy, particularly given Coursera’s new leadership hire in this area.
The research firm also noted that with a CFO transition currently in process, investors will be focused on Coursera’s outlook for fiscal year 2025, with Needham expecting at least a reiteration of guidance before a new CFO is named.
In other recent news, Coursera announced its integration with OpenAI’s ChatGPT, making it the first online learning platform to be embedded directly into the AI chatbot. This development potentially opens up Coursera’s educational content to ChatGPT’s reported 800 million weekly users, who can now access courses directly within their conversations. Additionally, Coursera has appointed Anthony Salcito as the General Manager of Enterprise, effective October 6, 2025. Salcito brings extensive experience from his previous roles at Nerdy and Microsoft, where he led global education initiatives.
In another leadership update, Coursera’s Chief Financial Officer, Ken Hahn, will step down after the third-quarter earnings report on October 29, 2025, but will remain in an advisory role for a year to ensure a smooth transition. Meanwhile, Cantor Fitzgerald has reiterated its Overweight rating for Coursera, setting a price target of $13.00. The firm highlighted key takeaways from the Coursera Connect 2025 event, emphasizing the importance of reskilling for the AI era and the future of customized learning. These developments collectively reflect Coursera’s strategic moves to enhance its platform and leadership team in a rapidly evolving educational landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.