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UPDATE: Needham & Company Upgrades Chegg (CHGG) to Buy, 'Spend Less Time Searching For the Answer'

September 26, 2022 6:53 AM EDT
Get Alerts CHGG Hot Sheet
Price: $28.56 --0%

Rating Summary:
    6 Buy, 12 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 5 | New: 0
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(Updated - September 26, 2022 6:54 AM EDT)

Needham & Company analyst Ryan MacDonald upgraded Chegg (NYSE: CHGG) from Hold to Buy with a price target of $28.00.

The analyst comments "We are upgrading Chegg to Buy and establishing a $28 PT as our analysis of Chegg’s 3Q and FY22 guidance assumptions combined with our forecast for Fall 2022 enrollment expectations suggest the company is positioned well to report upside to conservative expectations. We lay out the bull/base/bear case scenarios for Fall enrollments based on FAFSA application & renewal data, and our analysis gives us confidence that enrollments decline by only approx. 140k from Spring ’22, creating the potential for upside in 3Q given Chegg’s guidance that assumes that subs decline by ~500k. While it is possible for Chegg subs do decline by greater than enrollments, we believe continued int'l expansion and domestic stabilization, supported by stable usage in our student survey and a strong return of int'l enrollments, take the bear case off of the table."

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 $18.95 yesterday.


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