KeyBanc downgrades Coursera stock rating on softer demand outlook

KeyBanc has reduced Coursera Inc's stock rating to "Sector Weight" following softer demand outlook and the company's fourth-quarter guidance. KeyBanc cited the impact of weaker consumer demand on its third-quarter results and revised guidance for the fourth quarter. The stock fell to $4.66, close to its 52-week low of $4.53, with a year-to-date decline of 37%.

Despite recent headwinds, InvestingPro analysis deemed the stock undervalued, including it in the platform's Most Undervalued stocks list. Coursera's progress integrating Udemy, cost-saving measures, and product innovation were noted as positives by analyst Devin Au. However, the tougher demand backdrop and increased execution risks create a more uncertain path to growth stabilization.

KeyBanc lowered its 2027 estimates accordingly. The firm highlighted Coursera's strong third-quarter performance, which surpassed expectations, while its fourth-quarter guidance fell short. Projections indicate Coursera will become profitable this year, despite current losses. Investors can delve deeper with Coursera's Pro Research Report.