Chegg rallies after strong earnings report and guidance lift

Aug. 10, 2021 7:20 AM ETChegg, Inc. (CHGG)By: Clark Schultz, SA News Editor1 Comment

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  • Chegg (NYSE:CHGG) trades higher after topping Q2 estimates on revenue growth of 30% and boosted Q3 guidance. Services revenue was up 38% during the quarter.
  • Morgan Stanley keeps an Overweight rating on Chegg after taking in the report on its view that the strong earnings beat lays the groundwork for the company's next initiatives.
  • Analyst Josh Baer: "Bullish mgt commentary and demonstrated model efficiency highlight the attractive opportunity at current levels, w/a high 30%'s EBITDA CAGR through 2023 not in the price."
  • Morgan Stanley assigns a price target of $115 to CHGG to rep more than 40% upside.
  • Shares of Chegg (CHGG) are up 3.26% premarket to $82.38. The education tech stock trades below its 100-day and 200-day moving averages.

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