Nerdy assumed with an Overweight at JPMorgan

JPMorgan analyst Bryan Smilek assumed coverage of Nerdy with an Overweight rating and $5 price target. The company is introducing a freemium offering across both its consumer and institutional businesses to expand its reach, drive higher awareness, and serve as a conversion funnel, the analyst tells investors in a research note. The firm says initial demand signals have been encouraging ad it expects Nerdy to continue testing the freemium model ahead of back to school later this year. It projects revenue growth acceleration, adjusted EBITDA margin expansion and free cash flow generation in 2024.