Market Overview

4 Keys To The Bull Thesis On Chegg

Share:
4 Keys To The Bull Thesis On Chegg
Related CHGG
64 Biggest Movers From Yesterday
55 Stocks Moving In Tuesday's Mid-Day Session

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
Oct 2018JefferiesMaintainsHoldHold
Oct 2018First AnalysisUpgradesNeutralOutperform
Aug 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for CHGG
View the Latest Analyst Ratings

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

 

Related Articles (CHGG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
APTIJefferiesDowngrades38.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Tyson Foods Up 33% In 6 Months: What's Driving The Stock?

Scientific Games Hits 52-Week High: What's Aiding The Rally?