Jefferies Reiterates Buy on Chegg (CHGG) Following Analyst Day

November 17, 2016 8:20 AM EST
Get Alerts CHGG Hot Sheet
Price: $7.65 --0%

Rating Summary:
    6 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies reiterated a Buy rating and $12.00 price target on Chegg (NYSE: CHGG) following the company's analyst day. A key focus moving forward is growing overall engagement. Increased engagement will drive greater ARPU and growth in attach rates. The company remains on track to transition to a fully digital business by the end of the year. CHGGs target operating model post-transition is >60% gross margins and ~25% EBITDA margins.

Analyst Brian Fitzgerald commented, "Chegg hosted its Analyst Day walking through the capabilities of its product offerings and the attractive addressable market. Focus remains on expanding the 'student graph' as Chegg aims to embark on a 10+ year journey with its students. The transition to a fully digital business is nearly complete and mgmt provided outlook around its post-transition target operating model. We reiterate our Buy and $12 PT."

For an analyst ratings summary and ratings history on Chegg click here. For more ratings news on Chegg click here.

Shares of Chegg closed at $7.86 yesterday.

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