Chegg downgraded to Hold from Buy at Jefferies

Jefferies analyst Brent Thill downgraded Chegg to Hold from Buy with a price target of $11, down from $25. The analyst says artificial intelligence headwinds are starting to impact the fundamental story. Following the Q1 report, the analyst reduced fiscal 2024 revenue and adjusted EBITDA estimates each by 16%, and now sits 14% and 19% below consensus, respectively. Any impact from CheggMate, Chegg’s AI product, is likely multiple quarters away, the analyst tells investors in a research note. While the shares appear cheap, with no growth and "existential fears from AI," Chegg is fairly valued, contends the firm.