Needham Remains Bullish on Udemy (UDMY)

Udemy, Inc. (NASDAQ:UDMY) is one of the best consumer defensive stocks with more than 50% upside. On October 30, Needham analyst Ryan MacDonald maintained a Buy rating on Udemy, Inc. (NASDAQ:UDMY) with an $11 price target, basing the optimistic outlook on the company’s solid Q3 adjusted EBITDA performance and revenue.

Attributing the positive results to the company’s focus on improving its consumer subscription business, the analyst stated that Udemy, Inc. (NASDAQ:UDMY) is undergoing a strategic business model shift towards subscription-based revenue. While he expects this to slow consumer segment growth in H1 2026, the expected growth in subscription revenues in H2 2026 is anticipated to exceed the drop in transaction revenues, presenting a strong case for the company’s long-term success.

Udemy, Inc. (NASDAQ:UDMY) is a global learning company with an online platform for skill acquisition, validation, and development. It operates in two segments: Consumer and Enterprise. The Consumer segment targets individual learners, helping them attain valuable job skills and hands-on learning to excel in their professional careers. The Enterprise segment focuses on businesses and government customers, allowing them to reskill and upskill their public servants and employees.

While we acknowledge the potential of UDMY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.