Chegg, reported better-than-expected 2Q earnings on Monday, as the technology-based learning platform, benefited from stronger demand due to the coronavirus-led stay-at-home directives.
CHGG) adjusted EPS jumped 61% to $0.37 year-on-year and beat analysts’ expectations of $0.32. Its 2Q revenues soared 63% to $153 million year-over-year and surpassed Street estimates of $136.6 million. Further, its subscriber base increased by 67% to 3.7 million year-over-year.” data-reactid=”13″>Chegg’s (CHGG) adjusted EPS jumped 61% to $0.37 year-on-year and beat analysts’ expectations of $0.32. Its 2Q revenues soared 63% to $153 million year-over-year and surpassed Street estimates of $136.6 million. Further, its subscriber base increased by 67% to 3.7 million year-over-year.
Michael Grondahl of Northland Securities said, "Chegg saw increased engagement with students going online and renewals were up and cancellations down with a record number of questions and subjects in the quarter". He added, "CHGG’s efforts to restrict password sharing is still a multi-quarter benefit." Grondahl maintains his Buy rating on CHGG with a price target of $95 (10.6% upside potential).” data-reactid=”14″>Five-start analyst Michael Grondahl of Northland Securities said, “Chegg saw increased engagement with students going online and renewals were up and cancellations down with a record number of questions and subjects in the quarter”. He added, “CHGG’s efforts to restrict password sharing is still a multi-quarter benefit.” Grondahl maintains his Buy rating on CHGG with a price target of $95 (10.6% upside potential).
Strong Buy analyst consensus. Its stock has surged nearly 127% year-to-date, so it is not surprising that the average price target of $70.50 implies downside potential of 18%. (See CHGG stock analysis on TipRanks)” data-reactid=”19″>Currently, CHGG has a Strong Buy analyst consensus. Its stock has surged nearly 127% year-to-date, so it is not surprising that the average price target of $70.50 implies downside potential of 18%. (See CHGG stock analysis on TipRanks)
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