Why Analysts Turn Neutral on Udemy, Inc. (UDMY)

Udemy, Inc. (NASDAQ:UDMY) is among the most promising education stocks according to hedge funds. On February 9, Jason Tilchen from Canaccord Genuity reduced the price target on Udemy, Inc. (NASDAQ:UDMY) to $5 from $7 and reiterated a Hold rating, according to TheFly. With revenue and profitability modestly surpassing estimates, the company delivered a strong Q4, the firm noted.

As AI-driven content and new products help develop personalized learning experiences, the company continues to demonstrate progress in enterprise business strategy. These products include custom role-play simulations and MCP servers. Udemy, Inc. (NASDAQ:UDMY) didn’t provide any guidance due to the pending deal with Coursera, which is expected to close in the latter half of 2026.

Canaccord Genuity believes that the combined business will achieve an adjusted EBITDA margin of nearly 20%, driven by cost synergies and investments in product and go-to-market projects.

Overall, Udemy, Inc. (NASDAQ:UDMY) has a buy rating from 40% of the analysts covering the stock, with the remaining 60% neutral, as of February 25. With a 1-year median price target of $8.40, the stock boasts an upside potential of 66.93%.

Udemy, Inc. (NASDAQ:UDMY) is a California-based learning company that offers courses, professional services, learning architecture development, AI transformation packages, and seat-based subscription plans.

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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