On December 17, 2025, Canaccord Genuity set a price target of $7 for Udemy (NASDAQ:UDMY), while the stock was priced at $6.28. This target suggests an 11.38% potential increase. However, Canaccord downgraded Udemy from Buy to Hold, as reported by TheFly. This downgrade comes amid significant developments in the online education sector.
Coursera and Udemy have announced a merger valued at $2.5 billion, combining their strengths in the online learning market. This all-stock transaction has led to a 21.7% surge in Udemy's stock, reaching around $6.50. Coursera's stock also rose by 3.6% to approximately $8. The merger aims to enhance offerings for individual learners and enterprise clients.
The merger is expected to generate over $1.5 billion in pro forma annual revenue. Coursera anticipates $115 million in annual cost synergies within two years. Additionally, Coursera plans a share repurchase program post-merger. This strategic move aims to strengthen their market position and reassure investors of potential returns.
Despite recent revenue growth, both companies face market challenges, reflected in declining share prices. The merger seeks to address investor concerns by leveraging the combined strengths of Coursera's partnerships and Udemy's course marketplace. The merger is set to complete in the second half of next year, pending regulatory and shareholder approval.
Udemy's stock has seen significant fluctuations, with a current price of $6.25, marking a 16.39% increase. The stock has ranged from $6.05 to $7.40 today, with a market cap of approximately $928 million. Trading volume on NASDAQ is 24,489,825 shares, indicating strong investor interest amid the merger news.
