Chegg (CHGG) Lawsuit Creates Headline Risk but Little Potential Financial Impact - Needham & Company

Needham & Company analyst Ryan MacDonald reiterated a Buy rating and $120.00 price target on Chegg (NYSE: CHGG) after shares traded off following the announcement that Pearson is suing for copyright infringement.

The analyst stated "we expect this will shape up to be a lengthy legal battle between the two companies that does not likely have a near-term impact on Chegg's business. However, this adds another question to the stock amidst growing concerns around rising competition and subscriber retention as students return to in-person learning. Despite these growing concerns and the new distraction, we are confident that student demand for digital study tools remains strong domestically amidst expected enrollment growth in the fall semester, while Chegg's traction internationally continues to improve. We expect this combination of factors to drive outperformance."

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 $75.56 yesterday.

You May Also Be Interested In

• BMO Capital Upgrades SL Green Realty (SLG) to Outperform, 'NYC Is Back (Even Office)'
• Chegg Reports New Hire Equity Grants Under NYSE Rule 303A.08
• Morgan Stanley Downgrades Etsy (ETSY) to Underweight