– Provider of online education courses facing multiple headwinds.
– A highly competitive industry with low barriers to entry.
– Real FCF/earnings losses are widening from pressures of (1) costly constant refresh/update on content, (2) increasing customer acquisition costs, (3) increased scrutiny by enterprise customers on learning spend, (4) fade-out of COVID demand spike.
– Scuttlebutt suggests peer UDMY with a unique marketplace model is much better positioned.
– Trades for 5x forward revenue vs 2.4x for $UDMY.
– Expected to re-rate to 3x translating into a $10/share target.
Exp. gain: 40% to $10/share
Full COUR write-up (free guest account required): https://valueinvestorsclub.com/idea/COURSERA_INC/3770251013