Chegg (CHGG) Stock: $18 Target From JPMorgan

By Amit Chowdhry ● Jul 11, 2022
  • The shares of Chegg Inc (NYSE: CHGG) recently received an $18 price target from JPMorgan. These are the details.

The shares of Chegg Inc (NYSE: CHGG) recently received an $18 price target from JPMorgan. And JPMorgan analyst Doug Anmuth is maintaining a “Neutral” rating on the shares.

Anmuth adjusted the rating after reducing estimates and price targets on 26 companies across his interest coverage universe based on macro pressures, currency shifts, and company-specific dynamics. And the overall macro environment has deteriorated since the first-quarter earnings with inflation reaching a 40-year high in May, fuel costs up 45% since early February, and Chase credit card data indicating slowing consumer spending and lower consumer confidence, according to Anmuth.

JPMorgan models also suggest a 66% chance of a recession over the next 2 years and an 83% chance over the next 3 years. And Anmuth believes the Internet sector continues to have secular growth, but added that it is far more mature than in 2008-2009, and the ability to offset broader and macro trends is more limited.

However, Anmuth believes that the buy-side expectations and many equity prices already reflect a softer macro environment.

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