CHGG - Goldman Sachs Downgrades Chegg To Sell Cites Rising Competition From Gen-Z Using AI | Benzinga
Goldman Sachs analyst Eric Sheridan downgraded Chegg, Inc. (NYSE:CHGG) to Sell from Neutral, lowering the price target to $8 from $10.
The analyst modestly lowered revenue estimates, reflecting a lower subscriber count as the competitive environment intensifies, particularly as it relates to ChatGPT and other emerging competitors leveraging generative AI.
The analyst also slightly lowered margin assumptions to reflect flat margins in 2024 vs. 2023, driven by near-term investments in Chegg's forward AI initiatives.
Heading into 2024, according to the analyst, investor debates will center ...