Chegg price target lowered to $3 from $7 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Chegg to $3 from $7 and keeps a Hold rating on the shares. The firm notes revenues appear to be declining faster than expected, as evidenced by lower-than-expected Q3 guidance. While Craig-Hallum is intrigued by the company’s goal of achieving at least 30% adjusted EBITDA margins in 2025, it expects this will be a difficult target to achieve if revenues continue to decline double-digits.