Coursera's $115 Million-Plus Run-Rate Synergies Target Tracking Ahead of Schedule, RBC Says

MT Newswires Live06-24

Coursera (COUR) is expected to achieve its annual run-rate net synergies target of over $115 million ahead of schedule, supported by operating expense reductions, RBC Capital Markets said in a Tuesday research report.

Cost savings measures following its acquisition of Udemy include rationalization of sales and services coverage, paid marketing optimization, and reduction of redundant IT systems and other corporate functions, analysts wrote.

RBC stated it is incrementally more positive on the company's acquisition of Udemy, given increased revenue opportunity, gross margin uplift, and cross-sell opportunities.

The company will continue to report via its enterprise and consumer segments, but will start offering additional transparency into subscription revenue for both segments, according to the note.

The brokerage said it maintained its outperform rating on the stock and price target of $7 per share.

Price: 5.97, Change: +0.56, Percent Change: +10.26

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