Skip to main content

Market Overview

4 Keys To The Bull Thesis On Chegg

Share:
4 Keys To The Bull Thesis On Chegg

Online textbook rental innovator and education platform Chegg Inc (NYSE: CHGG) has had a remarkable 2017, with shares up 94 percent year-to-date. Given the vast potential of the online personalized education industry, Chegg's potential ranges beyond just textbooks. A new sell-side initiation report calls for even more growth, citing Chegg as an early mover in the space.

The Analyst

Nithin Pejaver of Citigroup initiated coverage with a Buy rating and $19 price target.

The Thesis

With Chegg expanding at a 26 percent compounded annual growth rate, Nithin Pejaver is positive on the company’s future and highlighted a bull case surrounding four key points:

  • A big opportunity: Chegg’s penetration of the addresseable market could be as low as 4 percent.
  • Chegg’s business model is a positive feedback loop that aids in new subscriber acquisition and cross-selling.
  • High cash conversion (90 percent) that will likely be used for M&A activity.
  • A pipeline of new products that are aimed at expanding the addressable marketing and increasing cross-sell opportunities.

Price Action

At last check, shares of Chegg were trading down 1.45 percent at $14.30.

Related Link: 

Citi: After Whole Foods, Here's 7 More Retailers Amazon Could Buy

Latest Ratings for CHGG

DateFirmActionFromTo
Mar 2021FBN SecuritiesInitiates Coverage OnOutperform
Feb 2021CitigroupMaintainsBuy
Feb 2021Lake StreetMaintainsHold

View More Analyst Ratings for CHGG
View the Latest Analyst Ratings

 

Related Articles (CHGG)

View Comments and Join the Discussion!

Posted-In: Chegg Citigroup Nithin PejaverAnalyst Color News Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
NTRSRBC CapitalMaintains117.0
STXLoop CapitalMaintains100.0
TRVRBC CapitalMaintains163.0
HXLCanaccord GenuityMaintains56.0
NFLXCowen & Co.Maintains650.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com