Last Updated: 11 Nov 2024
Executive Summary
Coursera Inc. (COUR), an online educational platform, has shown mixed financial performance in recent quarters. Despite revenue growth, the company continues to face profitability challenges. Analysts remain cautiously optimistic about Coursera's long-term prospects, but the current stock price of $7.44 suggests a potential buying opportunity.
Company Overview
Coursera provides online courses, specializations, and degrees from top universities and organizations worldwide. The company's platform connects learners with educators and offers flexible and accessible educational opportunities. Coursera has a global presence with over 100 million registered learners and partnerships with leading institutions such as Yale, Stanford, and Google.
Fundamental Analysis
Revenue: Coursera's revenue for the latest quarter (ending September 30, 2024) was $684.37 million, representing a 6.4% year-over-year growth.
Profitability: The company reported a net loss of $97.73 million for the same period, widening its operating loss margin to -12.4%.
Valuation: At the current stock price of $7.44, Coursera has a market capitalization of $11.78 billion. The company's trailing price-to-sales ratio is 1.722, indicating a relatively attractive valuation compared to industry peers.
Technical Analysis
Trend: Coursera's stock price has been in a downtrend since its all-time high in February 2023.
Support and Resistance: The stock has found support at around $7.00 and resistance at $8.00.
Moving Averages: The 50-day moving average is currently at $7.59, while the 200-day moving average is at $10.16, suggesting a potential reversal.
Short Term Outlook
In the short term, Coursera's stock price is likely to remain volatile as investors assess the company's profitability challenges. The stock could face further downside if the company fails to improve its margins. However, a positive earnings surprise or a favorable industry outlook could provide a catalyst for a rally.
Long Term Outlook
Analysts remain optimistic about Coursera's long-term prospects. The company's strong brand recognition, global reach, and partnerships with top institutions position it well to benefit from the growing demand for online education. However, Coursera needs to address its profitability issues to unlock its full potential.
Analyst Recommendations
According to analysts' consensus, Coursera has a rating of "Buy" with an average target price of $10.70. Three analysts recommend "Strong Buy," eight recommend "Buy," two recommend "Hold," and one recommends "Sell."
