Read How Barrington Research Previews Chegg's Q2 Results

Barrington Research analyst Alexander Paris reiterated Outperform rating on Chegg Inc CHGG with a price target of $25.
The analyst said the issues of enrollment, the economy, and inflation have all impacted the industry.
With higher wages and an increased cost of living, management said more people are shifting their priorities towards earning over learning, resulting in a lower course load.
The impact of these factors, the analyst believes, has been reflected in the reduced traffic to higher education support services websites.
The company's forecast for FY22 net revenues stands at $740 million - $770 million.
While the guidance reduction and sell-off after Q1 results were disappointing, the analyst agrees with management and views the current situation as temporary.
Price Action: CHGG shares are trading lower by 1.27% at $19.50 on the last check Tuesday.

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