Chegg price target lowered to $12 from $20 at BMO Capital

BMO Capital lowered the firm’s price target on Chegg to $12 from $20 and keeps a Market Perform rating on the shares. The company’s Q1 results topped expectations but the management withdrew its guidance as ChatGPT has "changed things" in March amid a "significant spike" in student interest hurting new customer growth rate, the analyst tells investors in a research note. While the pandemic impact initially was beneficial, the new technologies like ChatGPT, competition and enrollment pressures are having a negative impact, BMO added.