In a report released today, Alexander Paris from Barrington maintained a Buy rating on Chegg Inc (CHGG), with a price target of $44. The company’s shares closed yesterday at $44.98, equals to its 52-week high of $44.98.
Paris noted:
“We believe Chegg has additional 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 57% YTD (after rising 74% in 2018) and is trading at 10.7x our 2020 revenue estimate, at a premium to its Ed Tech peers (5.3x) and a group of high‐ growth vertical‐focused SaaS companies (8.9x). Nevertheless, we are maintaining our OUTPERFORM investment rating based on its sustainable, above‐average revenue growth. We will re‐evaluate our price target (currently $44) once the company reports its second quarter results.”
According to TipRanks.com, Paris is a 4-star analyst with an average return of 6.7% and a 51.1% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Strategic Education Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Chegg Inc with a $42.43 average price target.
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Based on Chegg Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $4.32 million. In comparison, last year the company had a GAAP net loss of $3.91 million.
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Chegg, Inc. engages in the operations of learning platform for students. It intends to empower students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades, and test scores.
