Chegg price target lowered to $11 from $17 at Piper Sandler

Piper Sandler analyst Arvind Ramnani lowered the firm’s price target on Chegg to $11 from $17 and keeps a Neutral rating on the shares. The company reported upside in Q1 to "muted expectations" but withdrew its annual guidance due to reduced visibility given significant advancement in artificial intelligence technology, the analyst tells investors in a research note. While ChatGPT’s impact in March was "not substantial yet," it’s unclear if CheggMate will offset the pressure Chegg has started to see in its core offering, says the firm. It believes the company has to make "significant changes in a rapidly changing environment."