Nerdy price target lowered to $5 from $6 at JMP Securities

JMP Securities lowered the firm’s price target on Nerdy to $5 from $6 and keeps an Outperform rating on the shares. Nerdy reported Q4 revenue slightly above consensus, while EBITDA came in $3M better than the high end of guidance and the company introduced the rollout of a freemium model and announced it is testing new lower-priced subscriptions, the analyst tells investors in a research note. The midpoint of 1Q24 revenue guidance came in 13% below consensus, making 2024 guidance back-end weighted as it bracketed consensus, the firm adds. The firm views freemium as a potential marketing hack as distribution through schools validates Nerdy’s tutoring credentials for consumers while introducing more districts to Nerdy’s offerings.