damircudic
damircudic
Cantor Fitzgerald analyst Brett Knoblauch sees Udemy (NASDAQ:UDMY) as an undervalued name in online education, naming the online learning platform his new top pick.
“We continue to believe that the market is underappreciating Udemy’s enterprise segment, Udemy for Business,” he explained. “We expect upside in shares to come from the market assigning a more appropriate multiple to this segment, as we currently believe it is being valued at 2.1x 2023 EV/Sales, and we believe it should be valued at a premium to broader software, which trades on 5.0x 2023E EV/Sales.”
Elsewhere, Nerdy (NRDY) moved up the list on Knoblauch’s preference ratings. He indicated his belief that a business model shift toward a Chegg (CHGG) like subscription business is bearing fruit.
“However, unlike Chegg, NRDY has an additional line of business that pertains to selling large contracts to K-12 schools and school districts,” Knoblauch clarified. “The combination of these schools being flush with pandemic-related stimulus and new data showing that test scores in the US post pandemic have collapsed lead us to believe that this business is poised to see meaningful growth.”
Dig into analyst ratings on Udemy.
