UDMY - Coursera: A Good Contrarian Buy

2024-06-18 15:01:22 ET

Summary

• Coursera has strong revenue growth potential driven by demand for professional certifications and online degree courses.
• The company benefits from operating leverage, cost-saving initiatives, and a healthy balance sheet, making it a good contrarian buying opportunity.
• Coursera's margin growth prospects look positive with inherent leverage in its business model and cost-saving initiatives through AI implementation.

Investment Thesis

Coursera, Inc. ( COUR ) has good growth prospects ahead. The company’s revenue growth should benefit from strong demand for professional certifications driven by the rising need for reskilling and upskilling. This demand should further be supported by increasing certifications by renowned industry partners, which should continue to boost new learner registration and help revenue growth. Additionally, strength in the government and campus businesses, traction towards online degree courses, and implementation of AI tools and technologies to scale the offering and improve user experience should also support revenue growth....

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