Analysts Are Bullish on These Services Stocks: Chegg Inc (CHGG), Lawson Products (LAWS)


There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Chegg Inc (CHGG) and Lawson Products (LAWS) with bullish sentiments.

Chegg Inc (CHGG)

Barrington analyst Alexander Paris maintained a Buy rating on Chegg Inc today and set a price target of $44. The company’s shares closed yesterday at $38.19, close to its 52-week high of $41.69.

Paris commented:

“Valuation/: As the company moves towards the bundling of its services (fall 2019), the deployment of text-based tutoring (2H/19) and international expansion (fall 2019), we believe Chegg has opportunities to increase its reach by moving more significantly into high school, which, in turn, will help attract a greater portion of incoming college freshmen to its services and by moving more into international markets (Canada, the U.K., Australia) over time. Chegg has risen nearly 35% YTD (after rising 74% in 2018) and is trading at 8.9x our 2020 revenue estimate, at a premium to its Ed Tech peers (5.3x) and a group of high-growth SaaS companies (7.1x). Nevertheless, we are reiterating our OUTPERFORM investment rating and 12-month price target of $44 on the basis of its sustainable, above-average revenue growth.”

According to TipRanks.com, Paris is a 5-star analyst with an average return of 11.0% and a 55.2% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Strategic Education Inc.

Chegg Inc has an analyst consensus of Moderate Buy, with a price target consensus of $41.29.

See today’s analyst top recommended stocks >>

Lawson Products (LAWS)

Barrington analyst Kevin Steinke maintained a Buy rating on Lawson Products today and set a price target of $37. The company’s shares closed yesterday at $30.94.

Steinke commented:

“We are forecasting organic growth of 5.3% on a combined basis from the Lawson MRO and Bolt operating segments; with the October 2018 acquisition of Screw Products, Inc. expected to contribute 70 bps to total sales growth. The FactSet consensus estimate for sales is $89.8 million (one other estimate of $90.0 million). The company does not provide quarterly or annual financial guidance.”

According to TipRanks.com, Steinke is a 1-star analyst with an average return of -1.0% and a 47.0% success rate. Steinke covers the Services sector, focusing on stocks such as Cross Country Healthcare, Echo Global Logistics, and Heidrick & Struggles.

Lawson Products has an analyst consensus of Moderate Buy, with a price target consensus of $37.

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