Chegg price target raised to $13 from $12 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Chegg to $13 from $12 and keeps an Equal Weight rating on the shares. Shares are likely to rally as “some investors see” a better path ahead given that strong Q2 results and positive customer acquisition and retention trend commentary will likely “help calm fears of a steeper ChatGPT induced degradation,” the analyst tells investors. However, the firm is concerned about a lack of visibility into future demand for Chegg and thinks its “too soon to know” the full impact in the next academic year.