Truist Securities Analyst Downgrades Coursera Rating, Citing “Persistent Losses” and Investor “Interest” Concerns.
February 28, 2023
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Tillman expressed his concerns that Coursera ($NYSE:COUR) is still unable to turn a profit, and the lack of investor enthusiasm for the platform’s products could hurt the company’s growth in the near future. He noted that Coursera ‘s reliance on one content partner could also have a negative impact on the company’s prospects, and hinted at the possibility of further downgrades in the future. Despite these issues, Tillman believes that Coursera still has value as a platform for online education and stated that it could become a more attractive option for investors over time. The downgrade from Truist Securities analyst Terry Tillman is a concerning development for those invested in Coursera .
The persistent losses and investor ‘interest’ concerns both suggest that the educational tech company might struggle to make progress in the near future, particularly if it is unable to diversify its content partners. As such, investors will want to keep a close eye on Coursera ‘s performance over the coming months to see if Tillman’s predictions come to fruition.
Stock Price
Trust Securities analyst has downgraded COURSERA’s rating citing persistent losses and investor interest concerns. This news has resulted in a mostly negative sentiment from investors, with many speculating the stock’s future prospects. The analysts have noted that the company’s current losses are unsustainable and represent a major risk for the company going forward.
On Monday, COURSERA stock opened at $11.1 and closed at $11.3, dropping by 6.8% from its last closing price of 12.1. This indicates a strong negative reaction from the market to the downgrade, displaying investors’ lack of confidence in the company’s ability to turn its fortunes around. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coursera. More…
| Total Revenues | Net Income | Net Margin |
| 523.76 | -175.36 | -32.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coursera. More…
| Operations | Investing | Financing |
| -38.05 | -234.02 | 12.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coursera. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 947.6 | 253.02 | 4.84 |
Key Ratios Snapshot
Some of the financial key ratios for Coursera are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.6% | – | -31.9% |
| FCF Margin | ROE | ROA |
| -9.9% | -14.9% | -11.0% |
Analysis
At GoodWhale, we have taken a close look at COURSERA’s financials, and our analysis reveals that it is a medium risk investment in terms of financial and business aspects. Although our risk rating indicates that there are certain risks associated with the company, our cashflow statement has not detected any major red flags so far. However, we have spotted one risk warning in the cashflow statement. If you’re interested in learning more, please register with us to gain access to our detailed financial analysis. We’re confident that after examining our data, you’ll be better equipped to make an informed decision about investing in COURSERA. More…
Peers
There is fierce competition between Coursera Inc and its competitors: Upstryve Inc, Ace Edulink Co Ltd, Udemy Inc. All of these companies are vying for a piece of the online education market. Coursera Inc has a strong foothold in the market, but its competitors are quickly catching up.
– Upstryve Inc ($OTCPK:PBYA)
Upstryve Inc is a publicly traded company with a market capitalization of 11.06k as of 2022. The company has a return on equity of 36.44%. Upstryve Inc is a provider of online marketing and advertising services. The company offers a range of services, including search engine optimization, pay per click management, and social media marketing.
– Ace Edulink Co Ltd ($TPEX:6764)
Ace Edulink Co Ltd is a leading provider of online education services. The company has a market capitalization of 1.39 billion as of 2022 and a return on equity of 16.58%. Ace Edulink offers a wide range of online courses and programs that cater to the needs of learners of all ages and levels. The company’s mission is to provide quality education that is accessible and affordable for all.
– Udemy Inc ($NASDAQ:UDMY)
Udemy is an online learning platform aimed at professional adults and students. The company has a market cap of $2.04 billion and a ROE of -17.26%. Udemy offers a variety of courses in a variety of subjects, such as business, design, development, marketing, and more. The company has over 30 million students and 57,000 instructors worldwide.
Summary
Analyzing Coursera is a complex process, as the stock has had a volatile past with up and down swings in the market. As of late, one major Truist Securities analyst downgraded the company’s rating, citing persistent losses and investor insurmountable interest concerns. Such news has certainly impacted sentiment, as investors have become more pessimistic about the stock, reflected by its declining stock price. To effectively analyze Coursera, investors should closely watch the company’s future financial performance, competitive position within its market, and overall innovation efforts in the education sector.
Additionally, investors should closely consider other factors that can impact the stock’s performance such as global economic conditions, political climate and currency exchange rates.
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