Analyst Raises Price Target For Chegg Inc (CHGG)
Analyst Jeff Silber from BMO Capital reiterated his Outperform rating on Chegg Inc (NYSE:CHGG) with a raised price target of $7, marking a 16.7% increase from current levels. This came after the company reported a second quarter upside surprise. Its EBITDA was $7.2 million, well above expectations of $5.9 million. The company is doing well with its Chegg Services business “where annual growth accelerated, with management expecting this to continue in 2H16.” Management also believes that Chegg Tutors, while small right now, will be the fastest growing business over the next several years. Additionally, this past July Chegg “moved its ACT test prep product from beta to paid, with expectations of doing the same for SAT prep in the fall.”
According to TipRanks, Silber has a success rate of 63% with an average return of 12.3% per recommendation.