Chegg price target lowered to $10 from $12 at BMO Capital

BMO Capital lowered the firm’s price target on Chegg to $10 from $12 and keeps a Market Perform rating on the shares. The company’s Q3 results beat expectations despite continued subscriber declines, and while Chat-GPT may have seemed like the grim reaper initially, Chegg is developing more personalized AI products that may create a competitive moat to GPT, the analyst tells investors in a research note. BMO adds that it is raising its FY23 EPS views by 4c to $1.12 and its FY24 view by 5c to $1.33 but also reducing its target price using “more current multiples”.