Citi Analysts Bullish on Udemy with Potential 100%+ Upside - Is it Time to Buy?
Citi analysts are singing the praises of Udemy, projecting a massive upside of over 100% from current levels. Despite recent challenges, the investment bank maintains a positive outlook on the EdTech company, especially highlighting its strong growth in Udemy Business (UB) amidst a tough environment for Enterprise Learning & Development (L&D).
While Udemy has faced its fair share of difficulties recently, Citi believes that the company's valuation presents a compelling opportunity for investors. With a Buy rating and a $20 price target, the analysts see significant potential for growth in the stock.
Even though Udemy's topline growth for 2024 may seem modest at around 7%, the company is making up for it by accelerating its profit and free cash flow targets. While a significant rerating of the stock may not happen until late 2025, Citi believes that the current valuation is extraordinary.
At just 1x current year enterprise value-to-sales (EV/Sales), the analysts view this as a great opportunity for investors with a 12-month horizon. Despite the challenges, Citi sees Udemy as a strong buy for long-term investors, with significant upside potential.
In conclusion, Citi's analysis of Udemy suggests that now might be the time to consider investing in this promising company. With a potential for over 100% upside and a positive outlook on growth, Udemy could be a lucrative opportunity for those looking to expand their investment portfolio.