Chegg downgraded at BofA/Merrill As previously reported, BofA/Merrill downgraded Chegg to Neutral from Buy. The firm downgraded shares following the Q4 report and guidance citing limited visibility into Print business margins. Price target is $8.
Chegg lowers FY15 revenue view to $295M-$310M from $300M-$315M Consensus $310.3M. Now sees FY15 total gross margin on both a GAAP and Non-GAAP basis between 36%-38% and adjusted EBITDA of breakeven to $5M. Previously saw FY15 gross margin on both a GAAP and Non-GAAP basis between 34%-36% and Adjusted EBITDA of breakeven or better. Still sees FY15 free cash flow in the range of $15M-$25M.