Chegg price target raised to $12 from $10 at BMO Capital

BMO Capital analyst Jeffrey Silber raised the firm’s price target on Chegg to $12 from $10 and keeps a Market Perform rating on the shares. The company’s Q2 results beat expectations, as customer acquisition and retention improved intra- quarter from the ChatGPT induced weakness seen previously, the analyst tells investors in a research note. Management also announced some changes to the AI strategy with a new partnership with Scale AI enabling Chegg to build its own large-language-model, the firm adds.