Ed tech firms react to rating changes from Morgan Stanley

Morgan Stanley revises ratings for education learning platforms Coursera COUR.N and Udemy UDMY.O

Upgrades UDMY to "equal weight" from "underweight", while downgrades COUR to "equal weight" from "overweight"

COUR shares fall 2.1% premarket to $9.18; UDMY rises 3.8% to $7.98

Brokerage says it does not expect valuation gap to meaningfully increase with stock moves not supporting prior ratings

While COUR has stronger growth prospects, differentiation and stronger portfolio, Morgan Stanley does not think its relative value to UDMY will change

In near term, companies will either benefit from high demand in GenAI learning content or face disruption from new AI-first entrants and lack of content differentiation - brokerage

As of last close, COUR up 10.4% YTD, while UDMY down 6.6%