Craig-Hallum analyst Alex Fuhrman upgraded Chegg to Buy from Hold, saying he is becoming more confident in the company's multi-year growth trajectory in light of several recent early stage initiatives. The analyst now believes Chegg is likely to maintain outsized growth beyond 2018, thus deserving a higher valuation. Fuhrman raised his price target on the shares to $12 from $8.

Morgan Stanley lowered the firm's price target on Chegg (CHGG) to $7 from $8.50 and keeps an Underweight rating on the shares. While the firm's fundamental estimates are unchanged, it has updated valuation multiples to reflect compression in the Education Software peer group, noting that revenue and EBITDA multiples are down low-double digits on average since last earnings. Among the group, the firm says it favors Docebo (DCBO) and Coursera (COUR) as it sees them with "the cleanest stories" and best likelihood for positive estimate revisions, which at odds with their discounted valuations.