2U price target lowered to $3 from $9 at Needham

Needham lowered the firm’s price target on 2U to $3 from $9 and keeps a Buy rating on the shares. The company’s Q3 revenue and EBITDA outperformed due to one-time revenue contributions from canceled contracts generating one-time fees, the analyst tells investors in a research note. While the sunsetting of programs drove upside in the quarter, underneath the hood, Alternative Credential segment revenue underperformed as coding bootcamp enrollments were weak, the firm adds.