Udemy earnings selloff a buying opportunity, says Citi

Citi lowered the firm’s price target on Udemy to $20 from $22 and keeps a Buy rating on the shares. The analyst says the disappointing outlook catalyzed by self-confessed execution errors during Q4 have led to a period of introspection for Udemy investors and weakness in the shares. However, the firm thinks the current downdraft in the shares represents an opportunity. Although disappointing, the pressures on Udemy’s growth will only really weigh on the first half of 2024 results. Citi thinks the $100M buyback “simultaneously provides cushion but also comfort the challenges should be temporary.”