COUR - Coursera: Likely An Overreaction From Temporary Headwinds

2024-05-13 18:11:04 ET

Summary

• Coursera's stock has declined by over 21% since last year, but I maintain a buy rating and believe it is undervalued.
• The company's revenue growth has slowed down, but operating cash flow generation has improved.
• The delay in content launch and potential slowdown in the consumer segment are temporary issues that can be mitigated by Coursera's focus on AI content.

Coursera ( COUR ) is a company developing a global platform that offers online courses globally. I first covered COUR in May last year, when I gave the stock a buy rating due to my belief that its AI strategy could unlock margin expansion opportunities. It appears that my call was proven wrong today, as COUR is recently trading at $8.8, down over -21% since my coverage....

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