UPDATE: Bank of America Initiates Coverage on Chegg with Buy Rating, $11.50 PT as Digital Businesses Drive Accelerated Growth

In a report published Monday, Bank of America analyst Nat Schindler initiated coverage on

with a Buy rating and $11.50 price target. In the report, Bank of America noted, “Chegg is a leading provider of learning media with over 180,000 print and 100,000 eTextbook titles available to rent or purchase and solution sets for over 3,000 of the most popular STEM textbooks. Its cloud-based Student Hub simplifies the complex process of attending college while serving to lower the cost of education. Its content library, early leadership in digital books, and the high capital requirements of book distribution serve as significant competitive moats, and we see few retailers that can effectively compete with Chegg. We are initiating with a Buy and an $11.50 PO.” Chegg closed on Friday at $9.49.