Chegg upgraded to Overweight on margin potential at KeyBanc

KeyBanc analyst Jason Celino upgraded Chegg to Overweight from Sector Weight with a $29 price target. The analyst believes EBITDA margin upside will be the key driver of the stock over the next 12 months. Chegg’s growth trends have at least stabilized, and the company should see "meaningful drivers" from pricing and mix shift, Celino tells investors in a research note. The analyst sees upside to 200 basis points of EBITDA margin improvement in 2023.