Chegg downgraded to Underweight from Neutral at Piper Sandler

Piper Sandler analyst Arvind Ramnani downgraded Chegg to Underweight from Neutral with a price target of $8.50, down from $9. The company delivered modest upside on muted Q4 expectations, wrapping up a year with “sustained revenue headwinds,” the analyst tells investors in a research note. The firm cites continued limited visibility, subscriber headwinds and broader artificial intelliotence related competitive pressures for the downgrade. Piper acknowledges that ChatGPT in its current state may be less effective than Chegg, but it expects that it will improve over time.