Chegg (CHGG) Earnings Preview, Stifel

January 24, 2022 9:24 AM EST
Get Alerts CHGG Hot Sheet
Price: $29.69 +0.34%

Rating Summary:
    6 Buy, 12 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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Stifel analyst Arvind Ramnani reiterated a Buy rating and $43.00 price target on Chegg (NYSE: CHGG) after analyzing 1) app & website traffic data, 2) technicals, and 3) valuation scenarios.

The analyst stated "Our analysis suggests student traffic and downloads witnessed a seasonal uplift (but still face tough comps). Investors we spoke with are broadly constructive and believe FY22 consensus estimates are reasonable. In our view, CHGG is currently a challenging tactical name (tech charts are bearish) and the stock is a "show me" story. However, with the stock trading at 4.8x NTM EV/Sales vs. its 3-YR average of 11.3x, longer-term investors with a 1+ YR outlook may be looking to add CHGG opportunistically, given its double-digit long-term revenue growth and 30%+ margins."

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 $26.21 yesterday.

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