(COUR) – Why this Coursera stock analyst is bullish
RBC Capital Markets analyst is bullish on shares of Coursera, Inc (NYSE: COUR), citing the strengths of its multi-segment business model, the irreversible tailwinds of the COVID-19 pandemic and the rapid growth opportunities for margin expansion.
Analyst Coursera: Rishi Jaluria launched the Coursera cover with an outperformance rating and a price target of $ 50.
Takeaway meals Coursera: Coursera’s multi-segment approach to consumer, business and higher education has enabled the digital education platform to benefit from a “strong ripple effect and a sustainable economic divide” , Jaluria said in an opening note Thursday.
Each segment helps promote other parts of the business, the analyst said. For example, Jaluria said the consumer side helps publicize the business of the company and serves as a funnel for Coursera’s curriculum, which helps lower the cost of acquiring the company’s customers. .
The pandemic has also changed the education sector and opened the door for many other online programs, Jaluria said.
The analyst sees room for growth in the digital education space, saying he believes more degrees will be available in a fully online format.
In addition, less developed markets such as India provide Coursera with a largely untapped market for online education, he said.
Coursera is growing rapidly with room for expansion, according to RBC.
From 2017 to 2020, Coursera’s revenue grew at a CAGR of 45%, and it was the seventh fastest growing software company in 2020, Jalura said.
The company’s overall margins in 2020 were 53%. Jaluria expects the company to show SaaS-like margins in the range of 70% and above in the future, but notes that for that to happen, Coursera’s revenue needs to become less dependent on its grand business. public and its corporate margins must increase.
Court Price Action: Coursera shares rose 5.37% on Friday to $ 46.52.
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