Chegg price target lowered to $10 from $11 at BMO Capital

BMO Capital analyst Jeffrey Silber lowered the firm’s price target on Chegg to $10 from $11 and keeps a Market Perform rating on the shares. The company’s Q4 results topped expectations but Q1 guidance was weaker than expected, while the management noted that despite some greenshoots, it may take time to see revenue and subscriber growth again, the analyst tells investors in a research note. The pandemic impact initially was beneficial, new technologies like ChatGPT competition and enrollment pressures are having a negative impact, the firm added.