Assessing Udemy: Insights From 8 Financial Analysts

Throughout the last three months, 8 analysts have evaluated Udemy UDMY, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $9.75, a high estimate of $14.00, and a low estimate of $7.00. Observing a downward trend, the current average is 5.43% lower than the prior average price target of $10.31.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Udemy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Udemy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Udemy compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Udemy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Udemy analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Get to Know Udemy Better

Udemy Inc operates a marketplace platform at the center of a vibrant knowledge network. The company operates under two operating and reportable segments Consumer and Enterprise, out of which the Enterprise segment derives the maximum revenue. Geographically, the company derives maximum revenue from North America. The company leverages data, technology, and insights for effective learning experiences. It helps individuals and organizations to possess effective skill acquisition and development with flexibility.

Financial Milestones: Udemy's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Udemy's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 5.49%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -4.93%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Udemy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -5.01%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Udemy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.62%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.05, Udemy adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.