Ed tech firms react to rating changes from Morgan Stanley

Coursera

05/06/2025 12:42

** Morgan Stanley revises ratings for education learning platforms Coursera COUR.N and Udemy UDMY.O

** Upgrades  UDMY to "equal weight" from "underweight", while downgrades COUR to "equal weight" from "overweight"

** COUR shares fall 2.1% premarket to $9.18; UDMY rises 3.8% to $7.98

** Brokerage says it does not expect valuation gap to meaningfully increase with stock moves not supporting prior ratings

** While COUR has stronger growth prospects, differentiation and stronger portfolio, Morgan Stanley does not think its relative value to UDMY will change

** In near term, companies will either benefit from high demand in GenAI learning content or face disruption from new AI-first entrants and lack of content differentiation - brokerage

** As of last close, COUR up 10.4% YTD, while UDMY down 6.6%

(Reporting by Twesha Dikshit)

((Twesha.Dikshit@thomsonreuters.com))