11:30 AM EDT, 07/26/2024 (MT Newswires) -- Coursera ( COUR ) posted "solid" Q2 results and looks poised for sustained growth for several years "with the shift to digital learning still in the very early innings," RBC Capital Markets said Thursday in a report.

Better-than-expected earnings and revenue reported on Thursday were mainly driven by the consumer segment, RBC said. Coursera ( COUR ) reaffirmed its full-year revenue outlook.

"We think inorganic opportunities for growth are on the table, and we like Coursera ( COUR ) potential to consolidate a distressed space over time," RBC said. "While near-term growth may be more subdued, risk-reward looks favorable."

Although a "tough comp" looms in Q3 for the consumer segment, "Q4 should benefit from additional GenAI-related content and more international course translation, making 2024 guidance of 10% achievable," RBC said.

Coursera ( COUR ) is benefitting from its multi-segmented approach that "creates a powerful flywheel effect and a sustainable economic moat," RBC said.

RBC reiterated its outperform rating on the stock and $18 price target.

Coursera ( COUR ) shares surged 38% in recent trading Friday.

Price: 10.22, Change: +2.84, Percent Change: +38.33