Chegg (CHGG) PT Lowered to $30 at Jefferies

Jefferies analyst Brent Thill lowered the price target on Chegg (NYSE: CHGG) to $30.00 (from $55.00) while maintaining a Buy rating following earnings.

The analyst commented, "CHGG printed in-line rev growth with a 7% Adj EBITDA beat in Q1, but a lowered FY22 guide sent shares lower. We believe the slowdown in growth is industry wide, and do not believe it is a result of increased competition. Growth should inflect as student behaviors normalize and international investments go-live. We lower our FY23 Chegg Services revenue / total adj EBITDA by 10% /8% respectively and adjust our PT to $30, implying 15x our FY23 EBITDA estimate."

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