Chegg price target lowered to $1.50 from $3 at Craig-Hallum

Craig-Hallum analyst Alex Fuhrman lowered the firm’s price target on Chegg (CHGG) to $1.50 from $3 and keeps a Hold rating on the shares. The firm notes that revenues are declining faster than expected and the company no longer expects to meet its prior 2025 targets. Chegg was an early victim of artificial intelligence as adoption of Chat GPT increased, but AI also held long-term promise to lower marketing and content creation costs and potentially turbo charge Chegg Study into a better, more interactive product. Now it appears that the next leg of artificial intelligence innovation is causing another leg of revenue declines faster than these cost savings can be realized, Craig-Hallum says.