Jefferies analyst Brian Fitzgerald raised his price target for Chegg shares to $17 from $13 following the company's Q2 results. The stock remains a top small-cap pick as it continues to yield more predictable revenue and better profitability, Fitzgerald tells investors in a post-earnings research note. He believes the company's EBITDA margins can double by 2020 and that the valuation still looks attractive, even with the shares rallying 93% year-to-date. The analyst keeps a Buy rating on Chegg.

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.