Chegg assumed with a Neutral at JPMorgan

JPMorgan assumed coverage of Chegg with a Neutral rating and $9 price target. The company is making progress across its generative artificial intelligence transformation and rollout of conservational tools that should enhance the user experience and drive deeper engagement, the analyst tells investors in a research note. The firm says that while large language models remain a competitive risk, Chegg’s return to revenue growth, increased cost discipline and generative AI efficiencies should drive incremental operating leverage over time.