KeyBanc has trimmed its price target for Coursera Inc (NYSE:COUR) to $10.00 from $12.00, while leaving an Overweight rating in place. The firm pointed to a valuation pullback as the basis for the lower target, even as it reiterated confidence in Coursera's long-term prospects within the Enterprise market and took a constructive view of the company's pending merger with Udemy.
Coursera shares are trading around $6.11, close to their 52-week low of $5.72, after a roughly 53% decline over the past six months. InvestingPro data cited by analysts indicates the stock appears undervalued relative to its Fair Value.
The adjustment from KeyBanc follows the company’s fourth-quarter results, which showed total revenue growth of 9.9% versus the Street’s expectation of 7%. That top-line strength was driven by gains across both the Consumer and Enterprise segments.
Management’s initial revenue growth guidance for fiscal 2026 came in at 6% to 8%, above market expectations of 5.8%. Within that outlook, the Consumer business is forecast to expand by more than 10%, while the Enterprise segment is projected to slow further into low-single-digit growth. Coursera also issued full-year EBITDA margin guidance of 9%, a level that was lower than some had anticipated amid plans to reinvest in growth initiatives.
KeyBanc framed its price-target revision as a response to the recent decline in valuation rather than a change in view on the company’s product opportunities. The firm continues to back Coursera’s long-term potential in serving enterprise customers and cited the pending Udemy transaction as a constructive development for the business.
Additional analyst commentary and reported results provide a mixed but generally constructive backdrop. Coursera reported fourth-quarter 2025 revenue of $197 million, a 10% increase that beat several analysts’ forecasts. Adjusted EBITDA rose by roughly 18% to about $11 million, and earnings per share came in at $0.06, in line with consensus. The reported revenue slightly exceeded a forecast value of $191.79 million.
On the analyst side, Telsey Advisory Group reiterated an Outperform rating and maintained a $14 price target, citing the quarter’s results. Needham kept a Buy rating and a $10 price target, noting that while the outlook for fiscal 2026 was mixed, an anticipated new platform fee should boost consumer gross margins in the back half of 2026. BMO Capital preserved an Outperform rating but lowered its price target to $8, pointing to concerns about margin trajectory.
Taken together, the recent developments paint a picture of steady revenue growth paired with divergent views among analysts on margins and near-term momentum. KeyBanc’s reduced target reflects a market-driven valuation decline rather than a wholesale reassessment of Coursera’s strategic opportunities, according to the firm.
What to watch
- How Coursera’s reinvestment plans affect the company’s ability to improve margins over the coming quarters.
- The pace of deceleration in the Enterprise segment versus Consumer segment growth, which management expects to exceed 10%.
- Market reaction to the pending merger with Udemy and whether it alters the competitive or revenue outlook.