Needham & Company analyst Ryan MacDonald raised the price target on Chegg (NYSE: CHGG) to $120.00 (from $115.00) while maintaining a Buy rating.

The analyst commented, "We are reiterating our Buy rating, while raising our PT to $120 following yet another strong quarter in which management delivered a sizable beat against heightened expectations. While continued healthy usage throughout the fall semester was expected, the magnitude of the beat was impressive in our view. Looking ahead to FY21, Chegg increased the outlook based primarily on the expectation of strong international subscriber growth as management believes the company will exit 2021 with over 1 million international subscribers. We expect this, combined with Chegg Study Pack-driven ARPU expansion, to sustain 25%+ revenue growth in FY21 and expand its EBITDA margin into the mid-30% range despite a difficult y/y comp. As such, we believe a premium multiple is warranted."