01:12 PM EDT, 09/19/2024 (MT Newswires) -- Coursera ( COUR ) is showing potential for revenue growth acceleration in 2025 amid strong platform dynamics and cost discipline, BofA Securities said in a note Thursday.

"While company mgmt. has guided to 10% revenue growth in 2024, we expect some re-acceleration in 2025/26 on better learner trends in NA...and AI-led boost to corporate training budgets," BofA analyst Nafeesa Gupta said. NA refers to North America.

"While near-term macro volatility is a concern for revenue growth, we think this is priced into valuation as COUR is trading at 0.6x EV/2025E sales, near its historic low multiple of 0.4x," Gupta added.

The report also pointed to the platform's large learner base and AI enhancements to harness growing upskilling/reskilling needs. It said Coursera's ( COUR ) over 155 million registered learners are lead generators for Enterprises and Degree students.

"We see rerating potential with revenue acceleration in '25 and margin gains," the analyst said. BofA initiated coverage on the stock with a buy rating and a price objective of $11.

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