J.P. Morgan Believes CHGG Won’t Stop Here

By Carrie Williams

J.P. Morgan analyst Doug Anmuth reiterated a Buy rating on Chegg Inc (NYSE: CHGG) today and set a price target of $10. The company’s shares opened today at $7.90, close to its 52-week high of $8.32.

Anmuth observed:

“highlighted products it is developing, such as CheggMate, a new study tool, and Career Explorer, a tool to help students make college and career choices. We came away with a better understanding of the difficulties that face the education industry and how Chegg is working to address them. With the transition from selling 1P textbooks largely behind it, we believe execution on existing digital products and more clarity on growth drivers behind newer products will be critical to prove that Chegg subscribers can be retained and market share can grow over time. We continue to believe that Chegg is well positioned to gain share of the global education market given its digital-first platform and growing reach. We reiterate our OW rating and our $10 PT.”

According to TipRanks.com, Anmuth is a top 100 analyst with an average return of 14.3% and a 63.3% success rate. Anmuth covers the Technology sector, focusing on stocks such as IAC/InterActiveCorp, TripAdvisor Inc., and Bankrate Inc.

Currently, the analyst consensus on Chegg Inc is Strong Buy and the average price target is $10.17, representing a 28.7% upside.

In a report issued on November 8, Piper Jaffray also maintained a Buy rating on the stock with a $8.50 price target.

The company has a one year high of $8.32 and a one year low of $3.15. Currently, Chegg Inc has an average volume of 615.1K.

Based on the recent corporate insider activity of 128 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CHGG in relation to earlier this year. Most recently, in February 2016, Ted Schlein, a Director at CHGG bought 25,000 shares for a total of $100,750.

Chegg, Inc. provides student-first connected learning platform, empowering students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades and test scores. The company offers an array of required and non-required scholastic materials including millions of textbooks in any format, access to online homework help and textbook solutions, course organization and scheduling, as well as college and university matching tools and scholarship connections. Chegg was founded by Osman Rashid and Aayush Phumbhra on July 29, 2005 and is headquartered in Santa Clara, CA.