Chegg price target lowered to $3 from $7 at BMO Capital

BMO Capital lowered the firm’s price target on Chegg to $3 from $7 and keeps a Market Perform rating on the shares. The firm updated its model after Chegg’s announcement that it will implement a restructuring plan, including a 23% reduction in its global workforce. While management believes this can help the company achieve 30%+ EBITDA margin and at least $100M in free cash flow in 2025, BMO’s estimates remain slightly below these levels, the analyst tells investors in a research note.