Nerdy price target lowered to $4 from $7 at Needham

Needham lowered the firm’s price target on Nerdy to $4 from $7 and keeps a Buy rating on the shares. The company’s Q3 results beat expectations as Learning Memberships – LMs – grew to 39.5k, ahead of the assumed 38k, but the management also lowered FY23 guidance as a number of LMs paused their subscription plan over the summer and fewer reactivated than expected, resulting in lower LMs in FY23, while another cohort downgraded their subscription during the same time, and fewer upgraded than expected, pressuring revenue per learner, the analyst tells investors in a research note.