Udemy downgraded to Neutral at BofA after another guidance cut

BofA downgraded Udemy to Neutral from Buy with a price target of $8.50, down from $14. While Q2 revenue was in-line with Street, revenue guidance was “significantly” reduced for a second time this year due to the ongoing challenging macro environment, softer than expected marketplace conversions, tight enterprise customer budgets, and the optimization of Udemy’s go to market organization, the analyst tells investors. The firm still views the company as well positioned to benefit from a secular shift to skills training, but is cautious on execution missteps, the evolution of strategic operational changes and “little evidence yet that revenue trends are stabilizing.”