Chegg falls after Morgan Stanley downgrade, PT cut
14/01/2025 16:34
** Shares of online learning platform Chegg Inc CHGG.N
down 8% to $1.49
** Brokerage Morgan Stanley downgrades the stock to
"underweight", cuts stock PT to $1.25 from $2
** The market is not appropriately pricing in the material
step-down in demand trends - Morgan Stanley
** The latest deterioration caused by changes in the
internet search experience, with AI-generated content displayed
at the top of search results pages, effectively
disintermediating content sites like Chegg - brokerage
** Eight of 11 brokerages rate the stock "hold" and three
rate it "sell" or lower; their median PT is $1.50 according to
data compiled by LSEG
** CHGG fell ~86% in 2024
(Reporting by Juby Babu in Mexico City)
((Juby.Babu@thomsonreuters.com;))