Chegg Inc. (NYSE:CHGG) shares rose sharply on Monday’s despite a broader decline in markets as a key analyst upgrade buoyed the stock.
Needham Securities analyst Ryan MacDonald upgraded the stock to a “Buy” rating on Monday morning, advising clients that the company’s forecasts were far too conservative. As such, he expects upside surprises for the company’s upcoming earnings results.
“While it is possible for Chegg subs do decline by greater than enrollments, we believe continued international expansion and domestic stabilization, supported by stable usage in our student survey and a strong return of int'l enrollments, take the bear case off of the table,” he told clients on Monday.
MacDonald upgraded his rating to “Buy” while assigning a $28 price target to the stock. Chegg (CHGG) shares rose 9.08% on Monday, marking the largest percentage gain among US-listed consumer defensive stocks on Monday.
Dig into Wall Street ratings on the stock.